The assessee, a Government employee, filed a return declaring salary income. Based on an Investigation Wing report, the AO reopened the assessment u/s 147 alleging receipt of ₹9.60 lakh as accommodation entry in the form of LTCG claimed exempt u/s 10(38). In reassessment, the AO made addition of ₹9.60 lakh LTCG u/s 68 (basis for reopening), ₹15.48 lakh towards cash/cheque deposits u/s 68 and ₹20.62 lakh towards investment in property u/s 69. The CIT(A) deleted the LTCG addition but sustained the other additions. The Judicial Member (Vice President) held that when the sole basis for reopening was deleted, the reassessment was bad in law, following ATS Infrastructure Ltd. v. ACIT (2024) 166 taxmann.com 61 (Delhi)(HC), CIT v. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom)(HC) and CIT(E) v. B.P. Poddar Foundation (2023) 148 taxmann.com 125 (Cal)(HC). The Accountant Member dissented. On reference u/s 255(4), the Third Member (President) agreed with the Judicial Member and held that as the addition forming the basis of reopening did not survive, the reassessment was invalid and other additions made during reassessment could not be sustained. (AY. 2012-13 )  (ITA No. 2650/Del/2024, dt. 06-08-2025 )