Change of opinion bars reassessment when a deduction claim was already examined in the original assessment.

Where an Assessing Officer has already examined a deduction claim in a section 143(3) assessment after specific queries and replies, reassessment under sections 147 and 148 cannot be used to revisit the same material merely to take a different view or correct an earlier omission. The recorded reasons must disclose a valid basis for reopening, and the power cannot operate as a review of a conscious earlier decision. Because the deduction issue had been enquired into in the original assessment, the later notice was treated as a change of opinion and the reopening was invalid; the assessee succeeded.

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Issues: Whether the reopening of the assessment under Sections 147 and 148 of the Income-tax Act, 1961 was invalid as a mere change of opinion, where the original assessment under Section 143(3) had already examined the deduction claim under Section 80IC of the Income-tax Act, 1961.

Analysis: The regular assessment was completed under Section 143(3) after the Assessing Officer raised specific queries on the assessee's claim for deduction under Section 80IC and the assessee furnished replies, resulting in partial disallowance of the claim. The reassessment notice was issued within four years, so the first proviso to Section 147 was not attracted, but the reopening still had to rest on a valid basis and not on an attempt to review an earlier conscious decision. The recorded reasons showed that the officer sought to exclude certain receipts from the deduction on the footing that they had been omitted earlier, which was treated as different from non-application of mind. Since the issue had already been enquired into in the original assessment, the later reopening amounted to a change of opinion. The reasons had to be read as recorded, and the reassessment power could not be used to correct mistakes made in the original assessment.

Conclusion: The reopening was held to be invalid as a change of opinion, and the assessee succeeded.

Ratio Decidendi: Where a claim has been consciously examined in the original assessment on queries raised by the Assessing Officer, reassessment cannot be initiated on the same material merely to take a different view or correct an earlier omission; reopening on such a basis is a change of opinion and is impermissible.

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