High Court quashes invalid tax reassessment notice under Income-tax Act. Assessing Officer cannot reassess already assessed income.

The High Court quashed the notice of reassessment under section 148 of the Income-tax Act, 1961, as it lacked validity. The Court held that the Assessing Officer cannot reassess income that has already been assessed or is the subject of appeal. Therefore, the petition was allowed, the notice was quashed, and the rule was made absolute with no order as to costs.

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Issues:
Challenge to notice of reassessment under section 148 of the Income-tax Act, 1961.

Analysis:
The petitioner, an assessee under the Income Tax Act, challenged a notice dated 30.3.2018 under section 148 for reassessment proceedings. The petitioner had undergone a thorough scrutiny assessment previously, which included an addition under section 69 towards investment in a flat. The CIT (Appeals) had deleted this addition, and the matter was pending before the Tribunal. The respondent issued a notice under section 148 based on information from a search conducted at the premises of a related group. The petitioner argued that the reassessment proceedings lacked jurisdiction and that a reasoned sanction under section 151 was required. The respondent rejected the petitioner's objections, leading to the challenge in the High Court.

The main ground of challenge was that the income sought to be reassessed had already been assessed and was the subject of appeal before the CIT (Appeals). The High Court considered the principle of "merger" and cited a previous decision where it was held that the Assessing Officer cannot reassess income that is already the subject of appeal or has been assessed. The Court also referred to another case where it was established that the Assessing Officer lacks jurisdiction to reopen assessments that are subject to appeal. Based on these precedents, the High Court quashed the impugned notice issued under section 148 of the Act.

In conclusion, the High Court held that the impugned notice of reassessment under section 148 lacked validity and could not be sustained. Citing previous judgments, the Court emphasized that the Assessing Officer cannot reassess income that has already been assessed or is the subject of appeal. Therefore, the High Court allowed the petition, quashed the notice dated 30/3/2018, and made the rule absolute with no order as to costs.

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