Reopening of assessment in individual's name followed by AOP assessment ruled impermissible on procedural grounds; reassessment quashed.

Reopening of assessment was initiated in the name of an individual but the subsequent assessment was framed against an association of persons (AOP). The tribunal held that converting the status from individual to AOP after a section 147 reopening is impermissible because the reassessment must conform to the original party and status named in the notice, and a change vitiates the reassessment process. As a result, the reassessment order was held invalid and quashed, and the assessee's appeal was allowed.

---

---

Issues: Whether a reassessment framed in the status of an Association of Persons (AOP) is invalid where the reopening under section 147 was recorded and initiated only in the name and status of an individual.

Analysis: The issue examines whether the identity and status of the person against whom reasons for reopening were recorded and proceedings initiated must correspond with the status in which the reassessment is ultimately framed. Relevant statutory provisions concerning reassessment and related procedural approvals are applied to determine whether initiation against an individual permits framing of assessment against an AOP without separate proceedings or jurisdictional steps against the AOP. The factual material shows reopening recorded in the name and status of an individual while the reassessment order was framed in the status of an AOP without initiating section 147 proceedings against the AOP.

Conclusion: The reassessment framed in the status of an AOP after reopening recorded only against an individual is invalid; the reassessment order is quashed and the addition deleted (decision in favour of the assessee).

Ratio Decidendi: Reassessment proceedings must be initiated and framed against the same person and status; a change in status from an individual to an AOP without separate valid proceedings against the AOP vitiates the reassessment.

---