Search assessment regime abates pending reassessment under section 153A, making continued proceedings under sections 147 and 148 invalid.

Where a search under section 132 is initiated and reassessment proceedings under sections 147 and 148 are already pending for a covered assessment year, the pending reassessment abates under section 153A for the six-year period and must be dealt with under the special search assessment regime. A reassessment continued independently despite that statutory mandate lacks authority of law. The reassessment framed in disregard of section 153A was therefore invalid and quashed on jurisdictional grounds.

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Issues: Whether the reassessment made for the relevant assessment year could survive after a search under section 132 when the reassessment proceedings were pending on the date of search and the year fell within the six assessment years covered by section 153A.

Analysis: On the date of search, the reassessment proceedings under sections 147 and 148 were pending for the relevant assessment year. The statutory scheme of section 153A provides that, upon initiation of a search, pending assessments and reassessments falling within the prescribed six-year period abate, and the Assessing Officer is required to proceed under section 153A. The legal position was applied that pending proceedings cannot continue independently once the search triggers the special assessment regime, and the reassessment framed in disregard of that mandate lacks authority of law.

Conclusion: The reassessment was held to be invalid and was quashed, with the result that the assessee succeeded on the jurisdictional ground.

Ratio Decidendi: Where a search under section 132 takes place and a reassessment for a covered assessment year is pending on that date, the pending proceeding abates by force of section 153A and cannot be continued or sustained under sections 147 and 148.

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