Search-related assessment jurisdiction: regular scrutiny assessment fails where Section 153C conditions are satisfied and search regime applies.

Where search-related material and recorded satisfaction under Section 153C brought the case within the deemed search assessment regime, the regular assessment under Section 143(3) could not stand. The tribunal admitted the additional jurisdictional grounds because they went to the root of validity and required no fresh fact-finding. It applied the principle that satisfaction under Section 153C fixes the deemed date of search for the assessee, and since the relevant assessment year fell within the six-year block, the assessment had to be framed under Section 153C. The assessment under Section 143(3) was treated as void ab initio and quashed.

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Issues: Whether the assessment framed under Section 143(3) was without jurisdiction and liable to be quashed because, on the facts found, the assessment ought to have been made under Section 153C.

Analysis: The additional legal grounds were admitted as they went to the root of the validity of the assessment and did not require fresh factual inquiry. The assessment was linked to search-related material, and the record showed that satisfaction under Section 153C had been recorded. Applying the principle that such satisfaction fixes the deemed date of search for the assessee, the relevant assessment year fell within the block of six assessment years preceding the search year. In that situation, the assessment could not validly proceed under Section 143(3) and had to be framed under Section 153C.

Conclusion: The assessment under Section 143(3) for the year in question was held to be void ab initio and was quashed.

Final Conclusion: The appeal succeeded on the jurisdictional challenge, rendering the remaining grounds academic.

Ratio Decidendi: Where the case falls within the search-related assessment regime and the statutory preconditions for Section 153C are satisfied, an assessment cannot be sustained under the regular assessment provision if it was required to be made under Section 153C.

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