Reassessment on a mere change of opinion is invalid when based only on an audit report without fresh material.

Reassessment under section 19(1) of the Bihar Finance Act, 1981 cannot be sustained on an audit report alone where it reflects only a different view on the same facts already examined at the original assessment stage. In the absence of fresh material or external information, a mere change of opinion does not constitute the statutory basis required to reopen a completed assessment. On that reasoning, the reassessment was invalid and the reassessment and revisional orders were set aside in favour of the assessee.

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Issues: Whether reassessment under section 19(1) of the Bihar Finance Act, 1981 could be validly initiated and sustained solely on the basis of an audit report and a subsequent change of opinion, without any fresh material or information.

Analysis: The reassessments were founded only on the audit report, which merely expressed a view that vacuum cleaners should be treated as electrical goods rather than machinery. The record disclosed no new factual material or external information not considered at the original assessment stage. A mere second thought or change of opinion on the same set of facts does not amount to information within the meaning of section 19(1). The audit report, by itself, was held insufficient to reopen the completed assessments.

Conclusion: Reassessment on the basis of the audit report alone was invalid and the impugned reassessment and revisional orders were liable to be set aside in favour of the assessee.

Ratio Decidendi: Reassessment cannot be initiated under section 19(1) of the Bihar Finance Act, 1981 on a mere change of opinion or on the basis of an audit report alone unless there is fresh material or information not considered in the original assessment.

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