Change of opinion cannot justify reassessment without fresh information showing escapement of income.

Reopening of assessment on a mere change of opinion is invalid where no fresh information is shown to justify belief that income escaped assessment. The original assessment had granted relief under the earlier income-tax law, and reassessment was initiated only because a successor Income-tax Officer later considered that excessive relief had been allowed. As the record did not show any new material in the officer's possession, the statutory condition for reassessment was not satisfied. The reopening was therefore held invalid, with the issue decided in favour of the assessee and against the Revenue.

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Issues: Whether the assessment was validly reopened under section 148 read with section 147(b) of the Income-tax Act, 1961 on the basis of a mere change of opinion.

Analysis: The original assessment had allowed relief under section 15C of the Indian Income-tax Act, 1922. The reassessment proceedings for the relevant year were initiated only because the successor Income-tax Officer later took the view that excessive relief had been granted. The record did not show that the reopening was founded on any fresh information in the officer's possession. Reopening under section 147(b) requires information leading to a belief that income has escaped assessment, and a reassessment cannot rest on a mere change of opinion.

Conclusion: The reopening was not valid and was held against the Revenue and in favour of the assessee.

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