Change of opinion bars reassessment where deduction claim was already examined on the same material.

Reassessment under section 147 was held invalid where the original section 143(3) assessment had already examined the deduction claim under section 80IC through specific queries and detailed replies. The Assessing Officer had applied his mind to the same material, and the recorded reopening reasons relied only on the earlier assessment order without any fresh tangible material or live nexus to escaped income. On that basis, reopening amounted to a prohibited change of opinion and an impermissible review of the prior decision. The reassessment notice and consequent order were therefore void, the assessee's appeal was allowed, and the Revenue's appeal was dismissed as infructuous.

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Issues: Whether reassessment under section 147 was valid when the original assessment had already examined the deduction claim and the reopening was founded only on a different view of the same material.

Analysis: The original assessment was completed under section 143(3) after specific queries were raised on the deduction claim under section 80IC and the assessee had furnished detailed replies. The Assessing Officer had applied his mind to the material, allowed the claim partly, and the issue had also been considered in first appeal. The recorded reasons for reopening referred only to the earlier assessment order and did not disclose any fresh tangible material or live nexus with escapement of income. Reopening on such a basis would amount to a review of the earlier decision, which is impermissible in law. The governing principle is that reassessment cannot be used to substitute a different opinion on the same facts in the absence of new material.

Conclusion: The reassessment notice and the consequent reassessment order were invalid and void for being based on a mere change of opinion. The assessee's appeal was allowed and the Revenue's appeal was dismissed as infructuous.

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