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<h1>Reassessment jurisdiction requires new tangible material; reopening on same examined facts invalidated and quashed in favour of the assessee.</h1> Reassessment under income tax law requires a genuine 'reason to believe' supported by new or tangible material; reopening an assessment on the same facts ... Reopening of assessment of a completed scrutiny assessment - scope of change of opinion - reasons recorded for issuance of notice u/s 148 indicate that the assessee was not entitled to deduction u/s 54F on the ground that the unutilised consideration was not deposited in the Capital Gains Account Scheme as required under sub-section (4) of Section 54F - HELD THAT: - The Court held when a scrutiny notice had already been issued and the regular assessment completed, it cannot be said that the aspect of non-deposit in the Capital Gains Account Scheme was not examined. Notice under Section 143(2) was issued during regular assessment to consider the claim for deduction/exemption for capital gains and investment in immovable property. The reasons recorded for re-opening of assessment is for the same purpose and on the same issue. In view of the acceptance of the claim in the regular return, it is to be held that the AO has by necessary implication expressed opinion on the matter and the present proceeding to re-open the assessment is a change of opinion by the Assessing Officer. A completed scrutiny assessment cannot be reopened in the absence of any new or tangible material indicating escapement of income [Paras 8, 9, 10] Final Conclusion: The appeal is dismissed; the reassessment under Section 148 is quashed as a prohibited change of opinion in the absence of new or tangible material. Issues: Whether the reassessment proceedings initiated by issuance of notice under Section 148 read with Section 147 of the Income-tax Act, 1961 reopening a completed scrutiny assessment were invalid as constituting a mere change of opinion in the absence of any new or tangible material.Analysis: The assessment under Section 143 was completed after scrutiny including consideration of the claim for deduction under Section 54F of the Income-tax Act, 1961 and issuance of notice under Section 143(2); the reasons recorded for reopening under Section 148 related to the same issue already examined in the regular assessment. Jurisprudential principles require that reassessment under Sections 147/148 be founded on a 'reason to believe' that income has escaped assessment supported by new or tangible material, and not on an assessing officer's mere change of opinion. Where an assessing officer has, by necessary implication or expressly, formed an opinion upon the issue in the original assessment, reopening on the same facts without fresh material amounts to impermissible change of opinion and exceeds reassessment jurisdiction.Conclusion: The reassessment proceedings under Section 148 read with Section 147 of the Income-tax Act, 1961 were quashed as being based on a mere change of opinion in the absence of any new or tangible material; the appeal by the Revenue is dismissed and the order under Section 148 is set aside in favour of the assessee.
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