Re-assessment proceedings under Section 147 rather than following the special procedure envisaged under Section 153C is bad in law
Recetnly, Mumbai ITAT in Parshwa Investment vs. DCIT CC 7(1), Mumbai ITA No. 1429/MUM/2025 has held that Re-assessment proceedings under Section 147 rather than following the special procedure envisaged under Section 153C is bad in law
Let us have a Short Overview of the case:
ISSUE: whether AO can reopen the assessee case under 147 when the material relied by AO is from search happened in 2019? When there is specific section in the Act i.e. 153C.
The court observed that AO, having relied entirely on such third-party search material from search happened in 2019 nonetheless proceeded to initiate reassessment proceedings under Section 147 rather than following the special procedure envisaged under Section 153C of the Act. The entire reassessment proceedings initiated by issuance of notice under Section 148, culminating in the reassessment order under Section 147, are rendered void-ab-initio and are liable to be quashed for want of jurisdiction.
Reliance placed on DCIT Vs Ghanshyam Rasiklal Shah in ITA No. 4707/MUM/2024 and Sejal Jewellery v. Union of India (Writ Petition No. 3057 of 2019) BHC
The copy of the order is as under:
