Change of opinion cannot justify reassessment, and superannuation fund contribution paid during the year remained deductible.

Reassessment under section 147 was held invalid where the reopening relied on the same tax audit material and facts already examined in the original scrutiny assessment under section 143(3); absent new tangible material, the action amounted to a mere change of opinion, so the reassessment was annulled. The contribution to an approved superannuation fund was also treated as deductible because it was paid during the relevant previous year and fell within the provision allowing deduction on actual payment basis; it was not disallowable merely as a prior-period expense, so the disallowance was deleted.

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Issues: (i) Whether reassessment initiated under section 147 was valid when the material for reopening had already been examined in the original scrutiny assessment; (ii) whether the contribution to the superannuation fund was allowable as a deduction.

Issue (i): Whether reassessment initiated under section 147 was valid when the material for reopening had already been examined in the original scrutiny assessment.

Analysis: The same tax audit material and the same facts were available when the original assessment under section 143(3) was completed. The reopening was based on a different view of the very same material and not on any new tangible material coming to light after completion of the original assessment. Reassessment cannot be founded merely on a change of opinion.

Conclusion: Reassessment was invalid and the reassessment order was liable to be annulled.

Issue (ii): Whether the contribution to the superannuation fund was allowable as a deduction.

Analysis: The contribution was made to an approved superannuation fund with effect from the relevant date, and the payment was made during the previous year. The deduction was considered allowable under the provision governing contributions to an approved superannuation fund, read with the provision allowing deduction on actual payment basis. The amount could not be disallowed merely as a prior period expense.

Conclusion: The deduction was allowable and the disallowance was rightly deleted.

Final Conclusion: The reassessment was quashed and the deletion of the disallowance was upheld, leaving the assessee successful in the matter.

Ratio Decidendi: Reassessment is invalid where it is based only on a change of opinion without any new tangible material, and contribution made during the relevant year to an approved superannuation fund is deductible on payment basis.

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