|DATE:||(Date of pronouncement)|
|DATE:||July 23, 2014 (Date of publication)|
|Click here to download the judgement (GK_147_protective_assmt.pdf)|
S. 147: Retracted statement cannot form the basis of reopening. Protective assessment without substantive assessment is not permissible
(i) The statement of Shri Subodh Gupta, CA. was recorded during the course of survey in his personal capacity. The statement was later retracted. A retracted statement recorded during survey cannot be a basis of assumption of jurisdiction u/s 147 of the Act (Dr. R.N. Thippa Shetty 322 ITR 525 (Del) followed);
(ii) The AO has not made any specific allegations against the assessee. He intended to make a protective assessment on the assessee. However, while there can be a substantive assessment without any protective assessment, there cannot be a protective assessment/addition without a substantive assessment/addition. As no substantive assessment/addition was made in the hands of Subodh Gupta, the protective reassessment assessment on the assessee is not permissible (M.P. Ramachandaran 32 SOT 592 (Mum) & Suresh K Jajoo 39 SOT 514 (Mum) followed).