Change of opinion bars reassessment where reopening relies only on material already examined in the original assessment.

Reassessment under section 148 was held invalid where the recorded reasons relied on material already disclosed with the original return and examined in the original assessment. The assessee had furnished the relevant financial statements and details of foreign currency loss and translation entries in response to a section 142(1) notice, and the original assessment was completed without disallowing the claim. Because the reopening reasons substantially repeated the same material already on record and disclosed no new tangible material, the exercise was treated as a mere change of opinion and an impermissible review of the earlier assessment. The reassessment order and the connected notices were set aside in favour of the assessee.

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Issues: Whether reassessment under section 148 of the Income-tax Act, 1961 was valid when the recorded reasons were based on material already furnished with the original return and examined in the original assessment, thereby amounting to a change of opinion.

Analysis: The assessee had disclosed the relevant financial statement along with the return of income. The notice under section 142(1) had specifically sought details of large expenses in the profit and loss account, and the assessee had supplied the particulars of net loss on foreign currency transactions and translation. The original assessment order was passed thereafter without disallowing that claim, while the related issue of warranty provision was expressly dealt with. The reasons for reopening substantially reproduced the same material already on record and did not disclose any new tangible material. Reassessment on such a basis would amount to a review of the earlier assessment on a mere change of opinion.

Conclusion: The reassessment was invalid and the impugned reassessment order, along with the notices and orders leading to it, were set aside in favour of the assessee.

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