Reassessment beyond four years barred by change of opinion where reopening relied on the same material already examined.

Reassessment notices issued beyond four years under the Income-tax Act were unsustainable where the assessee had already disclosed the relevant transactions and the Department relied on the same material examined in earlier proceedings. The reasons recorded showed no fresh tangible material, and there was no allegation that the assessee had failed to fully and truly disclose material facts. The proviso to Section 147 therefore applied, and reopening on an unchanged factual basis amounted to a mere change of opinion, impermissibly treating reassessment as review. The notices were without jurisdiction and liable to be quashed.

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Issues: Whether the notices issued under Section 148 of the Income-tax Act, 1961 for reassessment beyond four years were sustainable when the assessee had disclosed the relevant transactions and the Department sought to reopen on the same material already examined in earlier proceedings.

Analysis: The transactions underlying the depreciation claim had already been scrutinised in block assessment proceedings and in proceedings under Section 263 of the Income-tax Act, 1961, and the earlier adverse action against the assessee had been set aside. The reasons recorded for reopening did not disclose any fresh tangible material distinct from what had already been considered. In the absence of any allegation or material showing failure by the assessee to fully and truly disclose all material facts necessary for assessment, the proviso to Section 147 of the Income-tax Act, 1961 was attracted. Reopening on the same factual foundation amounted to a mere change of opinion and would impermissibly convert reassessment into review.

Conclusion: The reassessment notices were without jurisdiction and were liable to be quashed.

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