Reassessment beyond four years barred without fresh tangible material or failure of full and true disclosure, notice quashed.

Reassessment beyond four years was held impermissible where the original scrutiny assessment under section 143(3) had already examined the deduction claim and the Revenue relied on the same material without any fresh tangible material. The proviso to section 147 was not satisfied because there was no demonstrated failure by the assessee to fully and truly disclose material facts, so the reopening was treated as a change of opinion. The perfunctory rejection of objections was also unsustainable, and the reassessment notice and objection order were quashed.

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Issues: Whether reassessment notice issued beyond four years could be sustained when the original scrutiny assessment had already examined the relevant claim and no new tangible material was shown; and whether rejection of objections to reopening was legally sustainable.

Analysis: The original assessment under section 143(3) of the Income-tax Act, 1961 had examined the deduction claim under section 10AA after notices under section 142(1) and disclosure of the relevant documents by the assessee. The reassessment was initiated on the same material without any fresh tangible material coming to the Assessing Officer's knowledge. As the reopening was beyond four years from the end of the relevant assessment year, the proviso to section 147 required a failure by the assessee to disclose fully and truly all material facts necessary for assessment. That foundational requirement was not satisfied, and the reopening was therefore treated as a mere change of opinion. The objections to reopening were also rejected perfunctorily.

Conclusion: The reassessment action was not sustainable and the challenge to the notice under section 148 and the order rejecting objections succeeded.

Final Conclusion: The writ petition was allowed and the impugned reassessment notice and the order rejecting objections were quashed.

Ratio Decidendi: Reopening of an assessment completed under section 143(3), especially after four years, is impermissible in the absence of fresh tangible material and a demonstrable failure by the assessee to make a full and true disclosure of material facts.

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