Re: Can protective addition be offered to tax so that substantive addiction in earlier year shall be deleted?

A.O. had made addition of Rs. 1.68 correction on protective basis in A. Y. 2015-16 and on substantive basis in A. Y. 2014-15 in the case of a company. Can assessee offer protective addition to tax in A. Y. 2015-16 so that substantive addition in A. Y. 2014-15 shall be deleted? The clarification issued by CBDT is that if substantive addition is offered to tax in VSV then protective addition shall be deleted. Here the case is vise versa.

Considering the intention of the legislature ,  if the assessee against whom  the order is passed protectively , and the appeal is pending as on 31-01 -2020,  the assessee can avail the benefit of  Vivad se Vishwas Scheme. The order against  whom the substantial addition is made have to be deleted . One may  have file rectification  application or may point out in appeal proceedings . Normally the appeal relating to substantial addition and protective addition are  always heard together . If the appeals are not fixed together the assessee may have to make an application to fix the appeals together at the time of withdrawal of appeal . Representation is made to the CBDT to clarify the issue on protective assessment .We are expecting clarification from the CBDT . 

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