Reassessment proceedings cannot survive after quashing of the Section 148A(d) order, with the notice and reassessment set aside.

Once the order under Section 148A(d) was quashed, the notice issued under Section 148 founded on that order could not survive, and the consequential reassessment proceedings and reassessment order were equally liable to be set aside. The Bombay HC followed its earlier decision in a materially identical matter, holding that a reassessment action cannot stand on a quashed foundation. Accordingly, the impugned order, notice, reassessment proceedings and reassessment order were all quashed and set aside, granting the assessee complete relief.

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Issues: Whether the order passed under Section 148A(d) of the Income-tax Act, 1961, the notice issued under Section 148 of the Income-tax Act, 1961, and the consequential reassessment proceedings and reassessment order could be sustained.

Analysis: The petition was allowed in terms of the earlier judgment of the Court in a materially identical matter, as the facts and issues were covered by that decision. Once the order under Section 148A(d) was quashed, the notice under Section 148 founded upon that order also could not survive. The reassessment order passed thereafter, being based on the quashed foundation, was equally liable to be set aside.

Conclusion: The impugned order under Section 148A(d), the notice under Section 148, the reassessment proceedings, and the reassessment order were all quashed and set aside.

Final Conclusion: The assessee obtained complete relief against the reassessment action, and the petition was disposed of in the assessee's favour.

Ratio Decidendi: A reassessment notice and all consequential reassessment proceedings cannot survive once the foundational order authorising them is quashed.

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