Change of opinion bars reassessment where the reopening rests on material already examined in the original assessment.

Reassessment cannot be sustained where the material relied on for reopening was already fully disclosed, specifically called for, and examined in the original assessment. The return, financial statements, tax audit report, transfer pricing documents, and replies to the Assessing Officer's questionnaire had disclosed the royalty and technical fee transactions, which were also considered by the Transfer Pricing Officer. In the absence of any new tangible material, reopening on the same facts amounted only to a change of opinion, and the power to reassess could not be used as a power to review. The notice and the order rejecting objections were therefore invalid and quashed.

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Issues: Whether the reassessment notice issued under Section 148 of the Income-tax Act, 1961 was valid when the relevant material had already been disclosed, called for, and considered during the original assessment, or whether the reopening was barred as a mere change of opinion.

Analysis: The return, financial statements, tax audit report, transfer pricing documents, and replies to the questionnaire all disclosed the royalty and related technical fees. The Assessing Officer specifically sought this information, and the Transfer Pricing Officer also considered the royalty transaction. The original assessment under Section 143(3) was therefore made after consideration of the very material later relied upon for reopening. In the absence of any new tangible material, reopening on the same facts amounted only to a change of opinion. Such reopening is impermissible, as the power to reassess cannot be used as a power to review.

Conclusion: The notice under Section 148 and the order rejecting objections were invalid and liable to be quashed.

Final Conclusion: The writ petition succeeded, the reassessment proceedings were set aside, and the impugned notice and objections order were quashed.

Ratio Decidendi: Reassessment under Sections 147 and 148 cannot be sustained where the material forming the basis of reopening was already disclosed and examined in the original assessment, and the reopening rests only on a change of opinion without tangible new material.

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