Delhi HC rules block assessment order on protective basis Permissible even for block assessment u/s 158BC and 158BD

When there is no specific provision in the Income Tax Act for protective assessment, power lies with the AO to make such an assessment on protective basis under certain circumstances. When there is such a power to make the protective assessment while carrying out the normal assessment proceedings even in the absence of specific provision, we fail to understand how the absence of provision should be a ground to preclude the AO for making protective assessment in block assessment proceedings under Section 158BC/BD of the Act. Principle of law laid down by the Supreme Court holding that the AO has power to make protective assessment even when there is no specific provision under the Act would equally apply to the block assessment also.

IN THE HIGH COURT OF DELHI AT NEW DELHI

RESERVED ON: JANUARY 27, 2011

PRONOUNCED ON: JANUARY 31, 2011.

1) ITA NO. 981 OF 2008

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