Reassessment based on an audit opinion fails where it amounts only to a change of opinion and not legally cognisable information.

Reopening under section 147(b) based only on an audit view was invalid where the original assessment had accepted inclusion of interest on borrowed capital in construction cost. The Tribunal applied the principle that a mere change of opinion is not "information" for reassessment, and that an audit opinion on law is only an opinion, not legally cognisable information. On those facts, the reassessment lacked jurisdiction and was held invalid in law.

---

---

Issues: Whether reassessment under section 147(b) for the assessment year 1974-75 was without jurisdiction and invalid because it was based only on an audit view amounting to a change of opinion.

Analysis: The assessee had included interest on borrowed capital in the cost of construction, a method accepted in the original assessment. Reopening was initiated on the basis of an audit opinion that such interest could not form part of cost. The Tribunal applied the settled principle that a mere change of opinion does not constitute information for the purpose of reopening, and that an audit view on the law is only an opinion and not legally cognizable information. On the facts, the reopening lacked jurisdiction.

Conclusion: The reassessment under section 147(b) was held to be without jurisdiction and invalid in law.

---