Search-linked reassessment prevails over regular scrutiny where a search has been initiated and the scrutiny notice period has expired.

After a search under section 132, the Tribunal treated the search-linked reassessment route as the proper statutory mechanism for bringing escaped income to tax. It held that the Assessing Officer could not continue with regular scrutiny under section 143(3), particularly where the section 143(2) notice timeline had expired, because the special search-based procedure prevails over the general assessment provision. Applying the special-over-general principle and its earlier coordinate Bench view, the Tribunal found the section 143(3) assessment invalid and set it aside, so the assessee succeeded on the jurisdictional challenge.

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Issues: Whether the assessment framed under section 143(3) was valid after a search under section 132, or whether the Assessing Officer was required to proceed under section 148 with the approval contemplated by section 148B.

Analysis: A search had been conducted in the assessee's case, and the Tribunal treated the search-triggered mechanism as the proper statutory route for bringing escaped income to tax. It held that, in such circumstances, the regular scrutiny framework under section 143(3) could not be continued as if the case remained a normal assessment, especially when the notice timeline under section 143(2) had also lapsed. Applying the special-over-general principle, the Tribunal followed its earlier coordinate Bench view and held that the statutory course had to be taken under the search-linked reassessment provisions rather than the general scrutiny provision.

Conclusion: The assessment order framed under section 143(3) was held to be invalid and was set aside; the assessee's legal challenge succeeded.

Final Conclusion: The assessee obtained relief on the jurisdictional challenge, and the Revenue's cross appeal failed.

Ratio Decidendi: Where a search has been initiated and the case falls within the search-linked reassessment framework, the Assessing Officer cannot validly complete the matter under the general scrutiny provision; the special procedure must be followed.

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