Reassessment notices fail where the factual basis contradicts completed assessments and an earlier final finding on amalgamation.

Reassessment notices could not be sustained where the original assessments had already considered the amalgamation and the consolidated accounts. The notices proceeded on the assumption that no amalgamation had occurred during the relevant years, but that foundation was inconsistent with the assessment record. The critical issue of the amalgamation's effective date had also been finally resolved in earlier proceedings, with the Tribunal finding it effective from 1 July 1982 and the Revenue not pursuing further reference. On that finality, the factual basis for reassessment failed and the notices were quashed in favour of the assessee.

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Issues: Whether the reassessment notices issued for the relevant assessment years were liable to be quashed in view of the earlier completed assessments and the final finding that the amalgamation had taken effect from 1 July 1982.

Analysis: The original assessments had been completed after the Assessing Officer had taken into account the amalgamation and the consolidated accounts of the amalgamating company. The reassessment notices were founded on the premise that no amalgamation had taken place during the relevant accounting years. The later controversy for assessment year 1986-87 had already been resolved by the Tribunal in favour of the assessee by holding that the amalgamation was effective from 1 July 1982, and that finding had attained finality when the Revenue did not pursue further reference proceedings. In these circumstances, the basis of the reassessment notices could not survive.

Conclusion: The reassessment notices were invalid and were quashed, in favour of the assessee.

Final Conclusion: The writ petitions succeeded and the impugned reassessment notices were set aside.

Ratio Decidendi: Where the factual foundation for reassessment is inconsistent with the completed assessment record and the controlling issue has already attained finality in earlier proceedings, reassessment notices cannot be sustained.

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