AO couldn’t issue reassessment notice on second ground if notice issued on first ground was set-aside by HC : SC

AO couldn’t issue reassessment notice on second ground if notice issued on first ground was set-aside by HC : SC [2019] 106 taxmann.com 54 (SC) IT: SLP dismissed against High Court ruling that where High Court had already set aside reassessment proceedings for relevant assessment year on one issue, there was no warrant for issue of further notice under section 148 on another ground Section 147, read with section 32, of the Income-tax Act, 1961 – Income escaping assessment – Non-disclosure of primary facts (Second reassessment) – Assessment year 2005-06 – Assessee-company was engaged in business of manufacturing, trading and marketing of pesticides – For relevant year, assessee filed its return declaring certain taxable income – Assessment was completed under section 143(3) making certain additions – Subsequently, Assessing Officer reopened assessment and made additions on account of provision for diminution in value of assets and provision for doubtful debts – Tribunal set aside reassessment proceedings – High Court upheld order of Tribunal – Assessing Officer again initiated reassessment proceedings on ground that set off of unabsorbed depreciation against book profit was not in order – High Court by impugned order held that when High Court had already set aside reassessment proceedings for relevant assessment year, there was no warrant for issue of further notice under section 148 – Whether Special Leave Petition filed against impugned order was to be dismissed – Held, yes Rallis India Ltd