Cit Vs. Taj Oil Traders

counsels: anurup singhi, for the applicant. in the high court of rajasthan, jaipur bench y.r. meena & khem chand sharma, jj. - orderon a reference under section 256 of the income tax act, 1961, the income tax appellate tribunal, jaipur has referred the following question for our opinion :'whether, on the facts and in the circumstances of the case the tribunal was justified in holding that in a protective assessment returned income should be accepted and any addition proposed to be made, should be made only where the substantive assessment is framed ?'2. the assessee has shown a deriving income from the trading of edible oils. the books of the assessee were seized under section 131(3) of the income tax act, 1961. from the record it was found that the firm was only on papers as it did not carry any business. the business was found to have been conducted by shri chula ram, one of the partners of the firm. therefore, the assessee-firm was taxed on protective basis and income in the name of m/s. taj oil trading was taxed in the hands of chula ram.3. none appeared for the assessee. heard the learned counsel for the revenue.4. learned counsel for the revenue submits that now the substantive additions made in the hands of chula ram regarding the income shown in the name of m/s. taj trading, has become final. when the income shown in the name of assessee-firm has been finally taxed in the hands of the chula ram there is no justification to tax that income in the hands of assessee-firm. once the income has been assessed and taxed in the hands of chula ram, the question whether any addition should be made in the assessment on protective basis does not survive.5. in the result, we answer the question holding that once the income shown in the name of firm m/s. taj oil trading is assessed and taxed in the hands of chula ram there is no question of taxing the same income or any addition in the hands of the present assessee-firm.6. the reference application stands disposed of.