Reassessment notice cannot survive once the underlying basis has been set aside in connected appeals.

Where the foundation of reassessment had already been set aside in connected appeals decided in favour of the assessee, the reassessment notice under section 148 could not be sustained at that stage. The HC disposed of the writ petition without adjudicating the reassessment on merits, while granting liberty to revive the matter if the connected decision were later reversed in favour of the revenue.

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Issues: Whether the reassessment notice issued under section 148 could survive when the very basis of the reassessment proceedings had been set aside in the connected appeals.

Analysis: The connected appeals, which formed the foundation for the reassessment action, had already been decided in favour of the assessee. In that situation, the foundation for initiating reassessment was no longer available, and the notice under section 148 could not presently be sustained. The writ petition was accordingly disposed of with liberty to revive the matter if the connected decision were ultimately reversed in favour of the revenue.

Conclusion: The reassessment proceedings were held to have no surviving basis at that stage, resulting in relief to the assessee.

Final Conclusion: The writ petition was disposed of without a merits adjudication on the reassessment itself, while preserving the revenue's right to revive the proceedings if the connected appeals were ultimately decided in its favour.

Ratio Decidendi: Where the foundation of reassessment has ceased to exist because the underlying decision relied upon for initiation has been decided in favour of the assessee, the reassessment notice cannot be sustained at that stage.

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