Reassessment based on change of opinion fails where the deduction issue was already examined in scrutiny and no fresh material existed.

Reassessment under Section 147 read with Section 148 was invalid where the deduction claim under Section 80P(2)(d) had already been examined in the original scrutiny assessment. The assessee had disclosed the relevant interest income and Chapter VI-A deductions in its return and replies under Section 142(1), and the assessment record showed that the issue was considered before the original assessment was completed. In the absence of any fresh tangible material, reopening on the same material amounted to a mere change of opinion, which is impermissible. The reopening notice and the order disposing of objections were therefore set aside.

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Issues: Whether reassessment under Section 147 read with Section 148 of the Income-tax Act, 1961 was valid when the deduction under Section 80P(2)(d) had already been examined in the original scrutiny assessment.

Analysis: The return and the replies to notices under Section 142(1) showed that the assessee had furnished the relevant details of interest income and the deductions claimed under Chapter VI-A, including Section 80P(2)(d). The assessment record reflected that the issue was examined during scrutiny and the replies were considered before the original assessment was completed. In the absence of any fresh tangible material, reopening on the same material amounted only to a change of opinion, which is impermissible for reassessment.

Conclusion: The reopening notice and the order disposing of objections were invalid and liable to be set aside.

Final Conclusion: The reassessment proceedings could not be sustained because the issue had already been scrutinised and decided in the original assessment, with no fresh material to justify reopening.

Ratio Decidendi: Reassessment cannot be initiated on a mere change of opinion when the relevant issue was already examined in scrutiny proceedings and no fresh tangible material exists to form a reason to believe that income has escaped assessment.

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