Reassessment Blocked if Initial Grounds Invalid: New Notice Required Under Income Tax Act Section 147.

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....The case pertains to the validity of reopening an assessment u/s 147 of the Income Tax Act. The crux lies in determining whether the reassessment proceedings can continue when the original reason for initiating them is no longer available. Relying on precedents from the Bombay and Madras High Courts, it was held that if the ground for reopening is no longer valid, the reassessment cannot proceed based on the original notice u/s 148, necessitating a fresh notice. In the present case, the assessment order revealed that no additions were made concerning the deletion of the immovable asset, which formed the basis for reopening. Consequently, since reassessment could not be sustained on this ground, the assessment order was set aside in favor of the assessee, without examining other contentions regarding the invalidity of the notice u/s 148.....