Tribunal quashes reassessment citing unjustified opinion change, undisclosed investment already considered.

The Tribunal held that the reopening of assessment based on a change of opinion was unjustified. The addition of undisclosed investment in excess stock during reassessment was deemed unwarranted as the Assessing Officer had already considered the same information during the original assessment. The Tribunal ruled in favor of the assessee, setting aside the CIT(Appeals) order and quashing the assessment.

---

---

Issues:
1. Validity of reopening of assessment based on change of opinion.
2. Addition of undisclosed investment in excess stock.
3. Justification of the addition made by the Assessing Officer.

Issue 1: Validity of reopening of assessment based on change of opinion

The appeal challenged the validity of reopening the assessment, arguing that all information was available before the Assessing Officer during the original assessment. The Tribunal noted that a survey conducted earlier revealed the excess stock admission by the assessee, which was not included in the return. The AO reopened the assessment based on the unreported investment. The Tribunal held that if the AO had already considered the information during the original assessment and chose not to make an addition, reopening the assessment on the same grounds amounted to a change of opinion, which is impermissible in law. The Tribunal concluded that the reopening was unjustified and quashed the assessment.

Issue 2: Addition of undisclosed investment in excess stock

The Assessing Officer made an addition of undisclosed investment in excess stock during the reassessment. The CIT(Appeals) upheld this addition as the assessee did not report the investment in the return. The Tribunal observed that the surrender statement of the assessee regarding the investment was available during the original assessment, but no addition was made then. The Tribunal noted that the AO's decision to add the investment during reassessment was based on the same facts previously considered. The Tribunal found no merit in the addition and ruled in favor of the assessee, setting aside the CIT(Appeals) order.

Issue 3: Justification of the addition made by the Assessing Officer

The Tribunal analyzed the actions of the Assessing Officer in making the addition of undisclosed investment in excess stock during reassessment. The Tribunal observed that the AO had the opportunity to add the investment during the original assessment but chose not to. The Tribunal emphasized that once the AO had considered the facts and decided against an addition, reopening the assessment solely on the same grounds was not permissible. The Tribunal concluded that the addition made during reassessment lacked merit and ruled in favor of the assessee, quashing the assessment.

In conclusion, the Tribunal allowed the appeal, holding that the reopening of assessment based on a change of opinion was unjustified. The addition of undisclosed investment in excess stock during reassessment was deemed unwarranted as the AO had already considered the same information during the original assessment. The Tribunal set aside the CIT(Appeals) order and quashed the assessment.

---