ITAT Deletes Protective Basis Addition – No Parallel Assessments Allowed

ACIT Vs Rachna Finlease Pvt. Ltd. (ITAT Ahmedabad) Introduction: The Income Tax Appellate Tribunal (ITAT) Ahmedabad recently ruled on an appeal filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) concerning ACIT Vs. Rachna Finlease Pvt. Ltd. The case involved the addition made on protective basis in the assessment year 2010-11. The ITAT examined whether parallel assessments can be made in respect of the same income on two different persons. Analysis: The appellant, Rachna Finlease Pvt. Ltd., had its name struck off from the Registrar of Companies. The company rec...