Reassessment jurisdiction fails where the revenue had full facts and already chose to assess one member of an association of persons.

The assessing authority could either assess an association of persons as such or assess the members individually, but once it had sufficient material at the original stage and consciously chose one course, reassessment could not be used to reverse that election on the same facts. Section 148 required a genuine jurisdictional basis for escapement, such as absent or concealed primary facts, and not a mere change of approach after a completed assessment. As the earlier assessment had been made with full awareness of the joint venture and no reservation was kept for a further assessment of the association, the reassessment notice was without jurisdiction.

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Issues: Whether the Income-tax Officer had jurisdiction under section 148 of the Income-tax Act, 1961 to reopen an assessment after the assessee had already been assessed individually on the same transaction, when the department had material before it at the original assessment stage and had elected to assess the individual member instead of the association of persons.

Analysis: The statutory scheme recognised an option in the assessing authority, under the relevant provisions governing an association of persons, either to assess the association as such or to assess the members individually. Once the officer had sufficient material before him and consciously adopted one course, the later invocation of reassessment could not be used to withdraw from that election merely because the revenue wished to proceed differently. Reopening was permissible only where the jurisdictional fact of escapement existed because relevant primary facts were absent or concealed; it was not available to revisit a final assessment on the same facts. The earlier assessment was made with awareness of the joint venture, and there was no reservation preserving a further assessment of the association.

Conclusion: The notice under section 148 was without jurisdiction and the assessee succeeded.

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