IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN FRIDAY, THE 19TH MARCH 2010 / 28TH PHALGUNA 1931 ITA.No. 1042 of 2009() ---------------------- ITA.458/2006 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT --------------------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/RESPONDENT ------------------------------------------- M/S.TOJA TYRES & TREADS PVT LTD., KALADY. ADV. SRI.P.BALAKRISHNAN (E) FOR R1 THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 19/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & P.S.GOPINATHAN, JJ. --------------------------- I.T.Appeal No. 1042 OF 2009 -------------------------- Dated this the 19th day of March, 2010 J U D G M E N T Ramachandran Nair, J. The question raised in this appeal is whether the Tribunal was justified in cancelling the set off of undisclosed income estimated on protective basis against carry forward of losses. It is seen that the very same income was assessed on a regular basis in the hands of the assessee namely Tolin Rubbers (P) Ltd., which was cancelled in appeal by the CIT (Appeal) in an appeal filed by the said assessee. Since substantive additions are cancelled in the hands of the other assessee, the Tribunal held that the assessing officer was not justified in setting off the amount assessed on protective basis against carry forward of losses. It is seen that in connected cases the CIT (Appeal), cancelled the assessment made on protective basis. In any case since the addition itself is cancelled in appeal filed against the assessee on protective basis in the case of Tolin Rubbers (P) Ltd, we do not find any substantial question of law arising from the order of the Tribunal. Consequently appeal is dismissed. C.N.RAMACHANDRAN NAIR (JUDGE ) P.S.GOPINATHAN (JUDGE ) vps Crl.M.C.No. 2 Crl.M.C.No. 3