Reassessment based on change of opinion, not fresh information, cannot validly reopen completed income-tax assessment.

Reassessment under section 34(1)(b) of the Indian Income-tax Act, 1922 was invalid where the Income-tax Officer relied on no fresh information and merely reappraised material already on record. The later view that the youngest son would attain majority on a future date, and that the trust estate would remain under administration until then, was already apparent from the will and the original assessment record. Because the reopening was founded only on a change of opinion and not on information leading to a belief that income had escaped assessment, the reopening failed against the Revenue.

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Issues: Whether the Income-tax Officer validly reopened the assessment for the assessment year 1957-58 under section 34(1)(b) of the Indian Income-tax Act, 1922, or whether the reopening was based merely on a change of opinion without fresh information.

Analysis: Reopening under section 34(1)(b) required the Income-tax Officer to have, in consequence of information in his possession, reason to believe that income had escaped assessment or been under-assessed. The material relied upon for reopening was the later realisation, during assessment proceedings for another year, that the youngest son would attain majority only on a future date and that the trust estate was not fully administered till then. The factual basis for that conclusion, however, was already patent from the will and from the original assessment record, which showed the existence of the two sons and the relevant testamentary arrangement. No fresh or new information came into possession of the Income-tax Officer; what occurred was only a different view of the same material.

Conclusion: The reopening was invalid because it was founded on a mere change of opinion and not on fresh information; the question was answered in the negative, against the Revenue.

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