Reopening concluded assessments on a later circular is impermissible, and reassessment sanction fails if the assessee's reply is ignored.

A concluded assessment made under the then prevailing binding circular could not be reopened merely because the Commissioner later changed his view; the subsequent withdrawal of earlier instructions did not affect assessments already completed, so reopening on that basis was impermissible. The sanction for reassessment was also defective because the assessee's reply was filed but not considered before permission to reopen was granted, rendering the reassessment authorisation invalid. On both grounds, the reassessment proceedings were held unsustainable and the impugned orders were quashed, granting relief to the assessee.

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Issues: (i) whether a concluded assessment could be reopened on the basis of a subsequent circular issued by the Commissioner; (ii) whether the permission granted for reassessment was vitiated for want of consideration of the assessee's reply.

Issue (i): whether a concluded assessment could be reopened on the basis of a subsequent circular issued by the Commissioner

Analysis: The assessment had been completed in accordance with the then prevailing circular. A subsequent change in the Commissioner's view could not disturb a concluded assessment already framed on the basis of the earlier binding circular. The later circular withdrawing the earlier instructions did not alter the position in respect of completed assessments.

Conclusion: Reopening of the concluded assessment on the basis of the subsequent circular was impermissible and this issue was decided in favour of the assessee.

Issue (ii): whether the permission granted for reassessment was vitiated for want of consideration of the assessee's reply

Analysis: The record showed that the assessee had filed a reply before the authority granting permission to reopen the assessment, but the permission order did not take that reply into account. Such non-consideration rendered the sanction for reopening defective.

Conclusion: The permission for reassessment was invalid for failure to consider the assessee's reply, and this issue was also decided in favour of the assessee.

Final Conclusion: The reassessment proceedings were held unsustainable and the impugned orders were quashed, resulting in complete relief to the assessee.

Ratio Decidendi: A concluded assessment made on the basis of a binding circular cannot be reopened merely because the authority later changes its view, and a reassessment sanction is invalid if granted without considering the assessee's reply.

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