Jurisdictional defect in regular assessment under section 143(3) led to quashing of consequential unexplained money addition.

A regular assessment under section 143(3) was held invalid where the facts showed a requisition relating to seized cash, because the matter should have been dealt with, if at all, under the search-related or reassessment framework. The Tribunal found that reliance on cited authorities did not cure the jurisdictional defect in using the regular assessment provision on those facts. The assessment was therefore quashed, and the addition for unexplained money, together with the remaining grounds, became academic.

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Issues: Whether an assessment framed under section 143(3) of the Income-tax Act, 1961 was valid where the case arose from a requisition of cash, and whether the addition made on account of unexplained money could be sustained once the assessment itself was held invalid.

Analysis: The assessment was made under the regular provisions despite the factual matrix showing a requisition in relation to seized cash. In such circumstances, the proper course would have been to proceed, if at all, under the search-related or reassessment provisions. The Tribunal held that the Revenue's reliance on the cited authorities did not cure the jurisdictional defect in framing a regular assessment under section 143(3) on these facts.

Conclusion: The assessment under section 143(3) was quashed. The consequential addition and the remaining grounds became academic.

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