| Question And Answer | |
|---|---|
| Subject: | protective assessments |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Law Intern |
| Tags: | protective assessment, Revision of assessment, Revision of orders prejudicial to revenue |
| Date: | April 18, 2025 |
what are the effects, if no appeals are filed in such cases of protective assessments?
is 263 possible in such cases?
If an appeal is not filed against the protective assessment, it becomes final and the tax demand is enforceable. However, depending on the status of the substantive assessment, it can be argued that the demand should be dropped as there will be double assessment.
Section 263 can apply to protective assessments if the order is erroneous and prejudicial to the interests of the revenue (e.g., under-assessment or incorrect tax application).
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