Change of opinion bars reassessment where original scrutiny already examined the same material and no fresh information emerged

Reassessment notices under sections 147/148 were quashed because the original assessments under section 143(3) had already examined the same advertising and distribution revenue material after a detailed questionnaire and supporting replies. The recorded reasons showed no fresh tangible material or later-discovered information; they merely sought to reappreciate the existing record and adopt a different view. That amounted to a change of opinion, so the statutory requirement of a valid reason to believe was not met. The orders disposing of objections were also set aside, and the writ petitions were allowed.

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Issues: Whether the reassessment notices issued under sections 147/148 could be sustained when the original assessments had been completed under section 143(3) after examination of the very same material and without any fresh tangible material.

Analysis: The original assessment records showed that the Assessing Officer had issued a detailed questionnaire, obtained replies and supporting documents, and then framed the assessments after considering the advertising and distribution revenue and its tax treatment. The reasons recorded for reopening did not refer to any new material or fresh information discovered subsequently; they only sought to revisit the material already on record and to take a different view on the same facts. On these facts, the reopening amounted to a mere reappreciation of the earlier material and was therefore hit by the doctrine of change of opinion. In such a situation, the statutory requirement of a valid reason to believe based on new material was not satisfied.

Conclusion: The reassessment notices and the orders disposing of objections were unsustainable and were quashed. The writ petitions were allowed.

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