Section 153A abates pending reassessment after search, and jurisdiction cannot shift without a valid section 127 transfer order.

A search under section 132 triggered the special regime of section 153A, so a reassessment already pending under section 148 on the date of search abated and could not be continued under section 147; the assessment was therefore invalid for want of jurisdiction. The document also states that a valid transfer of jurisdiction under section 127 requires a lawful written order where applicable, and mere PAN migration does not replace statutory compliance; in the absence of such a transfer order, the assessment order was void ab initio. The assessment was annulled on jurisdictional grounds without examination of the merits.

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Issues: (i) Whether, after a search under section 132 of the Income-tax Act, 1961, the pending reassessment initiated under section 148 for the relevant assessment year had to abate and the assessment could be completed only under section 153A. (ii) Whether the assessment order was without jurisdiction for want of a valid transfer order under section 127 of the Income-tax Act, 1961.

Issue (i): Whether, after a search under section 132 of the Income-tax Act, 1961, the pending reassessment initiated under section 148 for the relevant assessment year had to abate and the assessment could be completed only under section 153A.

Analysis: The search took place after the Finance Act, 2017 amendments to section 153A, under which pending assessments or reassessments for the six preceding years and the specified relevant assessment years abate. The reassessment under section 148 was already pending on the date of search and the alleged escaped income exceeded the statutory threshold for the relevant assessment years. In such a situation, section 153A operated as the special jurisdictional provision, and the pending proceedings could not validly be continued under section 147.

Conclusion: The reassessment under section 147 was held to be invalid, and the assessment was quashed for want of jurisdiction under section 153A.

Issue (ii): Whether the assessment order was without jurisdiction for want of a valid transfer order under section 127 of the Income-tax Act, 1961.

Analysis: Transfer of a case between officers not subordinate to the same authority requires compliance with section 127, including a written order after giving reasonable opportunity where applicable. The record showed no valid transfer order transferring the case from the earlier jurisdictional officer to the officer who framed the assessment. The system migration of PAN details did not substitute for a lawful transfer of jurisdiction under the statute.

Conclusion: The assessment order was held void ab initio for lack of valid jurisdiction under section 127.

Final Conclusion: The assessment was annulled on jurisdictional grounds, and the assessee succeeded without any adjudication on the merits of the additions.

Ratio Decidendi: When a search triggers section 153A and a reassessment under section 148 is pending on the date of search, the pending proceeding abates and the assessment must be made under section 153A; jurisdiction cannot be assumed without strict compliance with section 127 where transfer of case is involved.

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