Reassessment beyond four years fails where the issue was fully examined in original scrutiny and no new tangible material existed.

Reopening of an assessment beyond four years was held invalid where the original scrutiny assessment had already examined the share application money issue on the basis of full disclosures, including applicant details, PAN, addresses, allotment records and supporting documents. As the reassessment reasons rested on the same material without any new tangible information, the action was treated as a mere change of opinion and an impermissible fishing inquiry. The reassessment notice and the order rejecting objections were quashed, and the assessee succeeded.

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Issues: Whether the notice reopening the assessment beyond four years and the order rejecting objections were valid when the material relating to share application money had already been examined in the original scrutiny assessment.

Analysis: The assessment was originally completed under scrutiny after the assessee had furnished the relevant details, including particulars of the share applicants, their addresses, PAN details, allotment particulars, board resolutions, and supporting documents. The reasons recorded for reopening were based on the same material and on a subsequent reappraisal of the very issue already considered. In the absence of any new tangible material, and where the conditions attached to reopening beyond four years required failure to disclose fully and truly all material facts, the attempt to reopen amounted only to a change of opinion and an impermissible fishing inquiry.

Conclusion: The reopening was invalid and the assessee succeeded on the issue.

Final Conclusion: The reassessment notice and the consequential rejection of objections were quashed, and the petition was allowed.

Ratio Decidendi: Where the material facts relating to an issue were fully disclosed and examined in the original scrutiny assessment, reassessment beyond four years cannot be sustained on the same material in the absence of new tangible information, as such action would amount to a mere change of opinion.

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