Reassessment Under Section 147 Invalid When Based on Search Findings

Aristocrat Residences LLP Vs ITO (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT) recently ruled that an assessment initiated under Section 147 of the Income-tax Act, 1961, based on information obtained from a search operation, is invalid. The Tribunal emphasized that when materials related to an assessee are found during a search on another person, the assessment must be conducted under Section 153C, which contains overriding provisions. The case involved an assessee whose assessment was reopened under Section 147/148 based on materials seized during a search on Mukesh Banka and his group ...