Reopening of assessment under section 147 is on the basis of material & information gathered during the course of search of third party is invalid. Provisions of section 153C will apply and not section 147 when the information was received by the AO from DCIT Central Circle 6(2), Mumbai on certain incriminating data gathered in the search of M/s Bhoomi Group. Relying on the decision of Hon’ble Jurisdictional High Court of Madhya Pradesh in the case of Ramballabh Gupta v. ACIT 288 ITR 347 (MP), the reopening of assessment is held to be invalid. Also, held that not providing opportunity of cross-examination of the third party on whose statement reliance was placed by the AO while framing the assessment under section 147 is ex-facie contrary to the principles of natural justice. On this ground also the assessment so framed is against settled principles of law, accordingly, the assessment is quashed as contrary to judicial pronouncements.