Reassessment beyond four years barred absent full disclosure failure; reopening on already examined material is a change of opinion.

Reassessment initiated after four years from the end of the relevant assessment year was invalid where the original section 143(3) assessment had already examined the section 35AD deduction and the recorded reasons did not identify any specific failure to disclose fully and truly all material facts. The first proviso to section 147 required such a disclosure failure for reopening, and a bare assertion was insufficient. Because the reopening relied on the same material already considered and amounted to a change of opinion, the reassessment notice and consequential orders were quashed.

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Issues: Whether reassessment initiated beyond four years from the end of the relevant assessment year was valid where the original assessment under section 143(3) had considered the claim under section 35AD and the reasons for reopening did not identify any specific failure by the assessee to disclose fully and truly all material facts.

Analysis: The original assessment had expressly examined and ed the deduction claim under section 35AD. The reassessment was commenced after the expiry of four years, so the first proviso to section 147 applied. In such a case, reopening is permissible only if income escaped assessment by reason of the assessee's failure to disclose fully and truly all material facts necessary for assessment. The reasons recorded referred only to material already on record and did not specify what fact or material had allegedly not been disclosed. A mere bald assertion of failure to disclose is insufficient. Reopening on the same material, especially where the assessment had already taken a conclusive view, amounts to an impermissible change of opinion and cannot be sustained.

Conclusion: The reassessment notice and the consequential orders were unsustainable and were quashed. The issue was decided in favour of the assessee.

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