Validity of reassessment when deduction claimed is prohibited under Income-tax Act: reopening based on change of opinion invalidates reassessment

Validity of reassessment where a deduction claimed is prohibited under the Income-tax Act was examined; the governing principle is that reopening cannot be justified merely by a change of opinion on the same material, and therefore a reassessment initiated on that basis is invalid and its merits need not be reviewed. The maintainability of a challenge as a substantial question of law was rejected because the jurisdictional parameters for reopening were not satisfied, and consequently no substantial question of law arises for adjudication and the appeal is not maintainable.

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Issues: Whether the jurisdictional parameters for reopening the assessment were fulfilled and therefore whether the reassessment was valid.

Analysis: The record shows that specific queries were raised during the original assessment and responses were furnished and accepted, so the reassessment was based on the same material. The proceedings were considered against the established principle that reassessment cannot be validly initiated merely because of a change of opinion where the assessing authority had considered specific explanations during the original assessment.

Conclusion: The jurisdictional parameters for reopening the assessment were not fulfilled; the reassessment is invalid and the appeal is dismissed.

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