Pending rectification proceedings barred reassessment on identical grounds, rendering the reopening without jurisdiction.

Identical reasons recorded for rectification and reopening meant reassessment could not be initiated while the section 154 proceedings on the same grounds remained pending. The subsistence of an unresolved rectification proceeding showed no withdrawal or disposal of that process, so reopening under sections 147 and 148 on the same basis was impermissible. The reassessment was therefore without jurisdiction and bad in law, and the proceedings were quashed.

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Issues: Whether reassessment proceedings under sections 147 and 148 of the Income-tax Act, 1961 could be initiated while rectification proceedings under section 154 of the Income-tax Act, 1961 were still pending on the same grounds.

Analysis: The reasons recorded for the rectification notice and for reopening were found to be identical. Reliance was placed on the principle that, in the absence of any order showing withdrawal or disposal of the section 154 proceedings, those proceedings must be treated as pending. During the pendency of such proceedings, initiation of reassessment on the same basis was held to be impermissible.

Conclusion: Reopening under sections 147 and 148 during the subsistence of pending section 154 proceedings was held to be without jurisdiction and bad in law, and the reassessment proceedings were quashed.

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