Reassessment reopening fails where primary facts were already disclosed and later information lacks a real link to the assessment year.

Reassessment under Sections 147 and 148 was held unsustainable where the assessee had already disclosed the primary facts concerning superannuation fund contributions, head office expenses, and depreciation on office machines, and the alleged escapement arose only from the assessing officer's inference or error. For the later years, the supposed public accounts committee material was not treated as valid fresh information because it lacked a real and relevant connection with the specific assessment years and did not justify the requisite belief for reopening. The reassessment notices were quashed and directed to be withdrawn and cancelled.

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Issues: (i) whether the notices under Section 148 were validly issued on the footing that the assessee had failed to disclose fully and truly all primary and material facts regarding contributions to the superannuation fund, head office expenses, and depreciation on office machines; (ii) whether, for the later assessment years, there was any fresh information within the meaning of Section 147(b) justifying reopening.

Issue (i): whether the notices under Section 148 were validly issued on the footing that the assessee had failed to disclose fully and truly all primary and material facts regarding contributions to the superannuation fund, head office expenses, and depreciation on office machines.

Analysis: The reopening reasons were examined against the materials on record and the correspondence produced at the hearing. The Court found that the assessee had brought the relevant facts to the notice of the assessing officers at the original assessments, and that the department's assertions of non-disclosure were not effectively supported by affidavits from the original assessing officers. On the superannuation fund issue, the Court held that the material showed the department was aware of the claim and that any allowance or disallowance involved the legal inference to be drawn from known facts, not suppression of facts by the assessee. On head office expenses, the Court found that the officers had been aware of the relevant claims and that any mistaken allowance was attributable to the assessing officer's error. On depreciation of the machines, the Court held that the fact of the claim and the relevant circumstances were before the department, and the question of legal allowance was for the revenue authorities to decide.

Conclusion: There was no omission or failure by the assessee to disclose fully and truly all primary and material facts, so reopening on that basis was not sustainable.

Issue (ii): whether, for the later assessment years, there was any fresh information within the meaning of Section 147(b) justifying reopening.

Analysis: The alleged public accounts committee material was found not to supply valid information for reopening because it did not establish a relevant and reliable basis connected to the particular assessment years. The Court held that the supposed information did not adequately relate to the years sought to be reopened and that the materials did not justify the formation of the requisite belief for reassessment.

Conclusion: There was no valid information within the meaning of Section 147(b) to support the reopening.

Final Conclusion: The reassessment notices for all the assessment years in question were quashed, and the respondents were directed to withdraw and cancel them.

Ratio Decidendi: Reopening of an assessment is not justified where the facts relied upon were already before the assessing authority and the alleged escapement arises only from the officer's inference or error, and any later information must have a real and relevant connection with the specific assessment year sought to be reopened.

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