Delhi HC Upholds Deletion of Protective Assessments for Lack of Incriminating Material

PCIT Vs Ravi Bharadwaj (Delhi High Court)

The Delhi High Court considered the Revenue’s appeal against the Income Tax Appellate Tribunal’s order dated 21.01.2026, whereby the Tribunal dismissed the Revenue’s appeal and observed that the Assessing Officer’s framing of protective assessments under the Income-tax Act, 1961 was premature as proceedings under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 were still pending.

The Revenue contended that the proceedings under the Black Money Act, 2015 related to different assessment years and, therefore, the appeals concerning Assessment Years 2011-12, 2012-13 and 2013-14 under the Income-tax Act, 1961 should not have been dismissed merely because the assessments were protective in nature.

After hearing the Revenue, the High Court held that it found hardly any substance in the contention. The Court particularly noted the Tribunal’s finding that the Revenue had been unable to point out any incriminating material. It observed that the existence or absence of incriminating material is a finding of fact and does not warrant interference.

The Revenue also referred to paragraph 16 of the Tribunal’s order, wherein the Tribunal had recorded that it was “not inclined to disturb the finding of the learned CIT(A),” and sought liberty to file a miscellaneous application before the Tribunal if the need arose after completion of the proceedings under the Black Money Act, 2015.