Reassessment barred by change of opinion where reopening relied only on material already examined in the original assessment.

Reassessment under section 147 was held invalid where the original section 143(3) assessment had already examined the same receipts, prior period income, sundry receipts and administrative expenses. The reopening was based on material already on record, and the reasons showed no new tangible material to support a belief that income had escaped assessment. On these facts, the action amounted to a mere change of opinion, which is impermissible. The reassessment was quashed, and the other grounds on merits were not examined.

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Issues: Whether reassessment under section 147 of the Income-tax Act, 1961 was valid when the original assessment under section 143(3) had already considered the relevant material and the reopening was founded on the same record.

Analysis: The reasons recorded for reopening relied on material already available in the assessment record, including receipts, prior period income, sundry receipts, and administrative expenses. The original assessment had been made after queries were raised and replies were furnished on the very issues forming the basis of reopening. No new tangible material was shown to justify a fresh belief that income had escaped assessment. On the facts, the reopening was founded only on a reconsideration of the same material, which amounts to a change of opinion. Reassessment on such a basis is impermissible.

Conclusion: The reassessment under section 147 was invalid and was quashed. The assessee succeeded on the legal ground, and the other grounds on merits were not adjudicated.

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