Reassessment barred by change of opinion where original scrutiny had already examined the same income classification issue.

Reopening of an assessment under Section 148 is not sustainable where the original scrutiny assessment under Section 143(3) had already examined the same issue and the assessee had fully disclosed material facts. The assessment records showed that the nature of the business activities and the exemption claim were specifically queried, replies and supporting documents were furnished, and the reassessment was based on the same material without any fresh tangible material. A change of view on whether receipts were agricultural income or business income amounted to a mere change of opinion. The notice under Section 148 and the proceedings based on it were quashed.

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Issues: Whether the notice reopening assessment under Section 148 of the Income-tax Act, 1961 was sustainable when the original assessment under Section 143(3) had examined the very same issue and there was no failure to disclose material facts fully and truly.

Analysis: The assessment records showed that the Assessing Officer had specifically queried the nature of the assessee's business activities and the exemptions claimed during the original scrutiny assessment, and the assessee had furnished replies and supporting documents. The reassessment notice was founded on the same material and the same issue, namely whether the receipts were agricultural income or business income, rather than on any fresh tangible material. In such circumstances, reopening could not be justified merely because the revenue had formed a different view later. Reassessment is permissible only where there is tangible material, the belief is not based on a mere change of opinion, and the notice is supported by non-disclosure of material facts.

Conclusion: The notice under Section 148 and the proceedings founded on it were quashed. The petition was allowed.

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