Post-Search, AO Cannot Use Section 147 – Reassessment Quashed as Void

Kashyap Kanaiyalal Mehta Vs DCIT (ITAT Mumbai) The ITAT Mumbai quashed reassessment proceedings holding that once a search under Section 132 is conducted, the Assessing Officer must proceed under Section 153A and cannot invoke Section 147. In this case, the AO reopened the assessment based on alleged bogus LTCG from penny stocks using investigation material that emerged from search proceedings. However, the Tribunal noted that the very basis of reopening was search-related information, thereby triggering the special provisions of Section 153A. It was held that: Reassessment proceedings pendin...