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TMI Blog2014 (2) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... protective assessment as substantive assessment in the hands of the Appellant without appreciating to the fact that the lady Appellant was neither the owner of the flat nor any payment had gone from her account pertaining to its purchase. b) Without prejudice to above, the Appellant and the flat purchaser (MIs. Globe Transport Corporation) are separately assessed to tax with their respective PANs and the Appellant having no direct connection with the affairs of the said firm, therefore, not only substantive assessment but even protective assessment in the hands of the Appellant is a wrong action on the part of the Assessing Officer which is entirely prejudicial to the interest of your Appellant. c) Without prejudice to above, the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee also sent the intimation to the AO of M/s Globe Transport Corporation to take necessary action in the hands of the firm. It is in this manner, an addition of Rs.20,25,000/- was made in the hands of the assessee. 4. The addition was challenged in an appeal filed before the CIT(A). Before the CIT(A), the assessment order dated 29-12-2008 framed in the hands of firm was produced and it was contended that since the substantial assessment has been made in the hands of the firm, therefore, no addition was required to be sustained in the hands of the assessee. The CIT(A) forwarded the reply of the assessee to the AO of the firm from whom he has received letter dated 24-6-2009. The contents of which are as under :- "With reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order dated 28/12/2007 of the firm as to whether the investment is pertaining to the firm but found explained or addition therefore not required in view of the other additions, the separate opinion of the concerned Assessing Officer of the firm expressed through his letter dated 24/06/2009 cannot come to the rescue of the appellant before me and I have no choice but to confirm the impugned assessment order by declaring the impugned addition to be substantive in the hands of the appellant in the facts & circumstances of the instant case. Accordingly, the appeal is dismissed on all the grounds and the impugned addition in the impugned assessment order is upheld on substantive basis." 5. Being aggrieved with the impugned order, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the assessee, the AO assessed the firm where the substantial assessment has been made. Copy of the assessment order of the firm is also enclosed in the paper book from pages 43 to 60. This addition has been discussed in the said assessment order as under :- 28. During the financial year relevant to the A.Y.2001-02, assessee firm is alleged to have received a sum of Rs.20,25,000/- as per the details given below : Cheque No. Date Amount Name of Bank 486041 21/06/00 250000 State Bank of Mysore 486042 21/06/00 275000 State Bank of Mysore 486043 29/06/00 250000 State Bank of Mysore 486044 03/07/00 250000 State Bank of Mysore 486045 04/07/00 250000 State Bank of Mysore 486046 06/07/00 250000 State Bank of Mysore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antive basis. No material has been brought on record to show that whether the said substantial assessment made in the hands of the firm has attained finality. Therefore, in the interest of justice, we restore the issues raised in this appeal to the file of the AO with a direction to re-examine the issues in the hands of the assessee in the light of the assessment framed in the hands of the firm where the income has been assessed on substantive basis. The order passed by the learned CIT(A) is set aside and the AO is directed to re-adjudicate the issue raised in the present appeal. We direct accordingly. 10. Grounds No.2 relates to levy of penal interest etc.. No arguments were advanced for this ground. In any case, levy of interest is conse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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