Appeals in cases of protective assessment. - Income Tax - 1842/1990

INSTRUCTION NO. 1842/1990 Dated: March 28, 1990 The need to obviate multiplicity of appeals in cases where protective assessments are made, has been considered by the board. 2. The Hon'able Gujarat High Court in CIT Vs. S.G.Modi (140 ITR 517) considered the question of blocking of appeals by tribunal in respect of protective assessment when the main issue was pending before the Supreme Court. The Court observed that when from unnecessary expenditure it was legal and proper as also pragmatic to grant the request to block proceedings and to adjourn the matter awaiting the decision of the Supreme Court on the crucial question on which the decision of the Supreme Court on the crucial question on which the decision in the appeal would turn. Also legality propriety and pragmatic consideration demanded that the paramount consideration must be to avoid unnecessary litigation and to save the parties from unnecessary cost required to be incurred in connection with such proceedings, if there was no prejudice to the either side. 3. The board desire that, as far as possible the appeal in respect of protective assessment may be transferred to the appellate authority having jurisdiction over the main case and a request may be made for hearing of the appeals together. Where this is not possible appellate authorities may be requested to keep the appeal on protective assessment in abeyance till the proceedings in the main case are finalised. 4. These instructions may be brought to the notice of all officers working in your region.