The assessee, HL, was the erstwhile father-in-law of another assessee  A. Search was conducted by the Central Bureau of Investigation and cash was found in the premises of the assessee, HL. The assessment was completed by making additions of Rs.5,50,000/-and Rs. 26,40,100/-. HL explained that the sum of Rs.26,40,000/-related to his son-in-law. Accordingly, a statement and an acceptance letter were submitted by the son-in-law. With regard to addition of Rs.5,50,000/-the assessee explained that the amount originated from the sale of house property. The Assessing Officer made a substantive assessment in the hands of the assessee HL and a protective assessment in the hands of another assessee. Later, A retracted his statement and submitted that cash of Rs. 26,40,100 seized from HL related to his elder son-in-law, AB. The Commissioner (Appeals) rejected the appeal of the assessee on the ground that the ownership was yet to be determined by the High Court.

Held, that the issue had not yet matured for determination of the ownership of the cash in the case of both assessees. The substantive assessment and protective assessments were alive for determination. Both assessees had filed new documents before the Tribunal which had not yet been verified by the Assessing Officer. Therefore, the issue was remitted back to the Assessing Officer for further adjudication considering the final determination by the High Court. (AY. 2001-02)