Tangible material supporting revenue-sharing character of development-rights receipts validated reassessment, rather than an impermissible change of opinion.

Reopening of a completed assessment requires a reason to believe that taxable income escaped assessment based on tangible material and cannot be used to review an earlier view. The assessment record of an association of persons contained a detailed finding that the assessee's entitlement to 35% of gross sale proceeds represented revenue sharing for surrendered development rights rather than a share of profits. As that material was not considered in the assessee's original assessment and differed from the earlier year's record, the reopening was within jurisdiction and did not constitute a change of opinion.

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Issues: Whether the notice reopening the assessment was validly issued on the basis of tangible material, or was barred as a mere change of opinion.

Analysis: Reopening of a completed assessment requires reason to believe that taxable income has escaped assessment, founded on tangible material; it cannot amount to a review of an earlier view. The assessment record of the association of persons for the relevant year contained a detailed determination that the assessee's entitlement to 35% of gross sale proceeds was a revenue-sharing receipt for surrendered development rights, rather than a share of profits. This material had not been considered in the original assessment of the assessee. The materially different assessment record for the relevant year distinguished the earlier year, in which the nature of the receipt had not been examined.

Conclusion: The reopening was within jurisdiction and was not founded on a mere change of opinion; the issue is decided against the assessee.

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