Reassessment u/s 147 held invalid when based on search material from third party – Proceedings ought to be u/s 153C

Abharan Jewellers Vs ACIT (Karnataka High Court) Abharan Jewellers, a partnership firm, challenged the reassessment proceedings initiated u/s 147 r.w.s 148 for A.Y. 2013-14. AO had issued notice dated 01-08-2016 u/s 148 & completed assessment u/s 143(3) r.w.s 147 on 29-12-2017, raising demand & initiating penalty. Assessee contended that the reopening was entirely founded on material seized during a search on a third party, & therefore, the only proper course available to the Revenue was to invoke the special procedure prescribed u/s 153C & not the general provision of s.147. A...