Change of opinion cannot sustain reassessment beyond four years absent failure to disclose material facts.

Reassessment notice issued beyond four years was invalid where it was based on the same valuation, exchange-loss, write-back and set-off material already examined in the original assessment. The reopening amounted to a mere change of opinion, and the first proviso to section 147 required a demonstrable failure by the assessee to disclose fully and truly all material facts necessary for assessment. No such failure was recorded or established. The reassessment was therefore without jurisdiction and the reassessment order was quashed in favour of the assessee.

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Issues: Whether reassessment initiated beyond four years was valid when the material relied upon was already on record and no failure to disclose fully and truly all material facts was shown.

Analysis: The reassessment was founded on the same valuation, exchange-loss, write-back, and set-off material that had been considered in the original assessment. The reopening thus amounted to a mere change of opinion. Since the notice was issued after four years from the end of the assessment year, the first proviso to section 147 required a demonstrable failure by the assessee to disclose fully and truly all material facts necessary for assessment. No such failure was recorded or established.

Conclusion: The reopening was invalid and the reassessment order was quashed. The issue is decided in favour of the assessee.

Ratio Decidendi: A reassessment notice issued beyond four years is without jurisdiction if it rests on a change of opinion on material already examined in the original assessment and the record does not show failure by the assessee to disclose fully and truly all material facts.

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