Reassessment based on a mere change of opinion is invalid when the original assessment already examined the same expenditure.

Reassessment under section 147 was invalid where the original section 143(3) assessment had already examined the impugned hire charges and the assessee had supplied the relevant details. Reopening on the same record, without fresh or tangible material, amounted to a mere change of opinion and was impermissible in law. An audit objection based only on alleged non-deduction of tax at source did not supply a valid new basis for reopening. The quashing of the reassessment was therefore upheld.

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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 examined the same expenditure and the reopening was based on an audit objection concerning non-deduction of tax at source.

Analysis: The original assessment was completed after the Assessing Officer had called for details regarding the impugned hire charges and the assessee had furnished the relevant particulars. The reassessment was initiated on the same material already available on record, without any fresh or tangible material. On those facts, the reopening was held to be a mere change of opinion, which is impermissible in law. The audit objection was treated as resting on the factual matrix of non-deduction of tax at source and not on any new legal position, and therefore it did not furnish a valid basis for reopening.

Conclusion: The reassessment was invalid and the order quashing the reopening was upheld. The Revenue's challenge failed.

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