Change of opinion bars reassessment when section 10B and section 14A issues were already examined on scrutiny.

Reopening under sections 147 and 148 was unsustainable where the deduction claim under section 10B had been specifically examined in the original scrutiny assessment, supported by detailed replies and documents, and accepted substantially on merits. The proposed disallowance under section 14A read with Rule 8D was also already considered and adjusted in the original assessment. On these facts, issuing a reassessment notice on the same material amounted to a mere change of opinion, which is impermissible. The reassessment notice was therefore liable to be quashed in favour of the assessee.

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Issues: Whether the reassessment notice issued under sections 147 and 148 was sustainable when the claims under section 10B and section 14A read with Rule 8D had already been examined in the original scrutiny assessment, or whether the notice was barred as a mere change of opinion.

Analysis: The claim for deduction under section 10B had been specifically queried during the original assessment and the assessee had furnished detailed replies and supporting documents. After considering the material, the Assessing Officer accepted the claim substantially and made only a minor disallowance. In these circumstances, reopening the assessment on the same issue amounted to a fresh examination of a matter already scrutinized, which is impermissible as a change of opinion. The same position applied to the proposed disallowance under section 14A read with Rule 8D, since that issue had also been considered in the original assessment and the disallowance had been adjusted on merits.

Conclusion: The reassessment notice was unsustainable and liable to be quashed, in favour of the assessee.

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