Reassessment beyond four years fails when it rests on the same material and lacks any recorded failure to disclose facts.

Reopening of a completed assessment under section 147/148 after four years was not sustainable where the original section 143(3) assessment had already examined the TDS issue and the recorded reasons relied on the same material in the record. The reassessment notice also did not allege that the assessee had failed to disclose fully and truly all material facts necessary for assessment, which is a jurisdictional requirement under the first proviso to section 147. On these facts, the reopening amounted only to a review or change of opinion, so the reassessment proceedings were without jurisdiction.

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Issues: Whether reopening of a completed assessment under section 147/148 of the Income-tax Act, 1961 was valid when the original assessment under section 143(3) had already examined the TDS issue and there was no recorded allegation of failure to disclose fully and truly all material facts.

Analysis: The assessment had originally been framed under section 143(3) after inquiry into deduction of tax at source on the relevant expenses. The reasons recorded for reopening proceeded on the same material already available in the record and did not refer to any fresh information. They also did not allege that the assessee had failed to disclose any material fact fully and truly in the original proceedings. Since the notice was issued after the expiry of four years from the end of the relevant assessment year, the first proviso to section 147 applied and required such a failure to be shown. In the absence of that foundational allegation, and where the reopening reflected only a review of the earlier view on the same issue, the jurisdictional condition for reassessment was not satisfied.

Conclusion: Reopening under section 147/148 was invalid and the reassessment proceedings were without jurisdiction; the assessee succeeded on the jurisdictional challenge.

Ratio Decidendi: A reassessment beyond four years from the end of the relevant assessment year cannot be sustained on a mere change of opinion or review of material already examined in the original assessment unless the recorded reasons disclose failure by the assessee to fully and truly disclose all material facts necessary for assessment.

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