Protective assessment without substantive assessment is invalid

1. The brief facts of the case are that the assessee had filed its return of income for the relevant assessment year 2005-06 on 29.10.2005 declaring income of Rs. 3,557/-. The return was processed u/s. 143(1) of the I.T. Act, 1961. Subsequently, the notice u/s. 143(2) of the Act was issued to the assessee. In response to the notice, the A.R. of the assessee attended the proceedings from time to time and filed the details. In this case during the year the share capital of the assessee company has increased by Rs. 1,01,90,000/- and Reserve and Surplus has increased by Rs. 1,98,64,000/- which sho...