Change of opinion cannot justify reassessment without fresh tangible material under income-tax reopening provisions.

Reassessment under the Income-tax Act is impermissible where the reopening rests only on a change of opinion after an assessment completed under Section 143(3). The power under Section 147 must be supported by fresh tangible material having a live link with the belief that income has escaped assessment; absent such material, reopening is invalid. On the facts, the reassessment was initiated without new material and was therefore set aside in favour of the assessee.

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Issues: Whether reopening of the assessment was valid when the reassessment was initiated on the basis of change of opinion and without fresh tangible material.

Analysis: The assessment had originally been completed under Section 143(3) of the Income-tax Act, 1961, and the reassessment was initiated under Section 148 of the Income-tax Act, 1961. The governing principle applied was that, after the amended Section 147 of the Income-tax Act, 1961, reassessment cannot be founded on a mere change of opinion. The power to reopen must be supported by tangible material having a live link with the belief that income has escaped assessment. On the facts, the reopening was held to be only a change of opinion and not based on any fresh material.

Conclusion: The reopening of the assessment was invalid and the reassessment was liable to be set aside, in favour of the assessee.

Final Conclusion: The Revenue's appeal failed on the reassessment issue, while the remaining questions were left open.

Ratio Decidendi: Reassessment under Section 147 of the Income-tax Act, 1961 is impermissible where it is based merely on a change of opinion and is unsupported by fresh tangible material.

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