Once Partners Paid Tax, Firm Can’t Be Taxed Again – Protective Addition Scrapped

Santlal Enterprise Vs ITO (ITAT Kolkata)

Assessee filed return declaring NIL income. The case was selected for CASS scrutiny. AO issued notices & a draft assessment order proposing additions, & Assessee sought adjournment till 25.04.2021. However, AO passed the final order prematurely on 21.04.2021, making total addition of ₹2,73,30,000 –

• ₹2,50,00,000 u/s 56(2)(x)
• ₹23,30,000 u/s 68 r.w.s. 115BBE (as unexplained cash deposit, on protective basis)

In appeal, CIT(A) deleted the ₹2.50 Cr addition u/s 56(2)(x), & the Revenue did

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