Change of opinion bars reassessment where the same material was already examined and only an audit objection existed.

Reopening of assessment under sections 147 and 148 on the basis of the same material already examined in the original section 143(3) assessment was invalid. The Assessing Officer had considered the relevant details relating to section 80HHC deduction earlier, and the reassessment sought only to reappraise the same receipts and expenses. That amounted to a mere change of opinion, not fresh tangible material. An audit objection on a question of law could not, by itself, constitute valid information for reopening. The reassessment was therefore held to be null and void, and the revenue's challenge failed.

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Issues: Whether reopening of the assessment under sections 147 and 148 of the Income-tax Act, 1961, on the basis of the same material and an audit objection, was valid.

Analysis: The original assessment had been completed under section 143(3) after the Assessing Officer had called for and examined the relevant details relating to deduction under section 80HHC. The reassessment sought to re-examine the very same receipts and expenses already considered in the original proceedings. On these facts, the reopening was founded not on any fresh tangible material but on a reappraisal of the same record, which amounted to a mere change of opinion. The audit opinion on interpretation of law could not by itself constitute information for reopening.

Conclusion: The reopening under sections 147 and 148 was invalid and the reassessment was rightly held to be null and void, in favour of the assessee.

Final Conclusion: The revenue's appeal failed because reassessment based only on a change of opinion and audit objection was impermissible in law.

Ratio Decidendi: Reassessment cannot be initiated merely on a change of opinion on the same material already examined in the original assessment, and an audit objection on a question of law is not sufficient information to reopen the assessment.

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