Reassessment notice upheld where original return was processed without scrutiny and no change of opinion bar arose.

Reassessment notice was upheld because the original return had been accepted under section 143(1) without scrutiny, so the disputed depreciation claim on meters and capacitors had not been examined earlier and the bar of change of opinion did not arise. The record also showed that the reasons for reopening were recorded on 30 March 2005 by the same officer who issued the notice, and the later reference in those reasons did not prove that they were prepared after issuance. The challenge based on section 151 sanction was not examined for lack of factual foundation.

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Issues: Validity of the reassessment notice, including whether the reasons for reopening were recorded before issuance of the notice and whether reopening was barred by change of opinion.

Analysis: The original return had been accepted under section 143(1) of the Income-tax Act, 1961, without scrutiny, so the issue of depreciation on meters and capacitors had not been examined in the original assessment. The record showed that the reasons for reopening were recorded on 30 March 2005 by the officer who also issued the notice. The reference in the recorded reasons to assessment proceedings for a later assessment year did not show that the reasons were recorded after the notice. Since no scrutiny assessment had been made on the disputed issue, the bar of change of opinion did not arise. The additional contention regarding sanction under section 151 of the Income-tax Act, 1961 was not examined for want of factual foundation in the petition.

Conclusion: The reassessment notice was upheld and the challenge to reopening failed.

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