Reassessment jurisdiction fails when reopening rests only on group search material, without any seized material or evidence linking the assessee.

Reopening under section 147 was found unsustainable where the reasons rested only on seized material from a group concern and no document belonging to the assessee was found. The record showed no independent evidence, statement, or enquiry linking the assessee to the alleged cash interest payments or additional land payments, and the reasons for reassessment were identical to those in connected group cases. In these circumstances, inferred reliance on material relating to other assessees could not confer jurisdiction. The reassessment was therefore treated as invalid and void ab initio, leaving the merits of the additions academic.

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Issues: Whether the reassessment under section 147 of the Income-tax Act, 1961 was valid when the reasons were founded on seized material found in the search of a group concern and no material belonging to the assessee was shown to exist.

Analysis: The reasons for reopening were identical to those recorded in connected group cases. The record showed that no seized document belonging to the assessee was found during the search, and the lower authority had also recorded a categorical finding to that effect. There was no independent material, evidence, statement, or enquiry to connect the assessee with the alleged cash interest payments or additional land payments. In these circumstances, the reopening was based only on inferences drawn from material relating to other assessees, which could not sustain jurisdiction under section 147. The merits of the additions were therefore left academic.

Conclusion: The reassessment was held to be invalid and void ab initio, and the assessee succeeded on the jurisdictional challenge.

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