Reassessment on same material amounts to change of opinion and is invalid absent fresh tangible material.

Reassessment under sections 147 and 148 was invalid because the reopening relied on the same cash purchase details already furnished during the original section 143(3) assessment. As the reasons recorded were based on material already before the Assessing Officer, no fresh tangible material existed to justify a belief that income had escaped assessment. Reopening on identical material amounted to a mere change of opinion, which is impermissible under settled law. The reassessment proceedings were therefore quashed and the matter was decided in favour of the assessee.

---

---

Issues: Whether reassessment under sections 147 and 148 of the Income-tax Act, 1961 was valid when the material relied upon for reopening had already been placed before the Assessing Officer in the original assessment and no new tangible material existed.

Analysis: The original assessment records showed that details of cash purchases had been furnished by the assessee and were before the Assessing Officer during the proceedings under section 143(3). The reasons recorded for reopening were founded on the same material already available in the assessment record. In such circumstances, no fresh tangible material was available to justify formation of belief that income had escaped assessment. Reopening on the same material amounts to a change of opinion, which is impermissible under the settled law governing section 147.

Conclusion: The reassessment proceedings were invalid and were rightly quashed. The issue is decided in favour of the assessee.

---