Reassessment beyond four years barred by change of opinion where all material facts were fully disclosed in scrutiny assessment.

Reassessment initiated after four years was invalid where the original scrutiny assessment under section 143(3) had already examined the bank deposits, considered the assessee's explanation and supporting records, and made no addition. On the same material, reopening amounted to a change of opinion. As the first proviso to section 147 required a failure to disclose fully and truly all material facts, and no such failure was shown, the reassessment was without jurisdiction and unsustainable in favour of the assessee.

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Issues: Whether reassessment initiated after expiry of four years from the end of the relevant assessment year was valid when the original assessment under section 143(3) had examined the very issue and the assessee had disclosed all material facts fully and truly.

Analysis: The original assessment record showed that the Assessing Officer had specifically enquired into the bank deposits, considered the assessee's explanation, affidavit, and supporting bank records, and then completed the assessment without addition. In such circumstances, reopening on the same material amounted to a change of opinion. Since the reassessment was initiated beyond four years, the first proviso to section 147 required failure by the assessee to disclose fully and truly all material facts, and no such failure was established. Reassessment on the same facts, after earlier acceptance in scrutiny assessment, was therefore without jurisdiction.

Conclusion: The reassessment was invalid and unsustainable, and the issue was decided in favour of the assessee.

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