Change of opinion and denial of reasonable opportunity rendered reassessment invalid and the addition unsustainable.

Reassessment under section 147 was treated as invalid where the cash-deposit issue had already been examined in the original section 143(3) assessment on the same material; reopening on that basis was characterised as a mere change of opinion and annulled. The addition made in reassessment also failed because the assessee was not given a reasonable opportunity: the notice-to-order gap was very short, the reply was rejected without identifying the further evidence required, and the procedure was found unfair. The reassessment was annulled and the substantive addition was deleted.

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Issues: (i) Whether reassessment under section 147 of the Income-tax Act, 1961 was valid when the cash-deposit issue had already been examined in the original assessment; (ii) Whether the addition made in reassessment could survive when reasonable opportunity was not afforded to the assessee.

Issue (i): Whether reassessment under section 147 of the Income-tax Act, 1961 was valid when the cash-deposit issue had already been examined in the original assessment.

Analysis: The cash deposits had been examined in the original assessment under section 143(3), in which the returned income was accepted. The reassessment was based on the same material and amounted to reopening the concluded matter on the very same facts. Such reopening was treated as a mere change of opinion and a review of the earlier view, which is outside the scope of reassessment proceedings.

Conclusion: The reassessment proceedings were invalid and the reassessment order was annulled.

Issue (ii): Whether the addition made in reassessment could survive when reasonable opportunity was not afforded to the assessee.

Analysis: The show-cause notice was issued on a Friday and the assessment order was passed on the following Monday, leaving only a very short intervening period. The assessee nevertheless filed a reply, but the Assessing Officer rejected it without identifying the further corroborative evidence required. The circumstances showed failure to grant a reasonable opportunity and breach of fair procedure.

Conclusion: The addition did not survive on merits and was liable to be deleted.

Final Conclusion: The reassessment was annulled and the assessee obtained relief on the substantive addition as well, with the appeal being disposed of in its favour for statistical purposes.

Ratio Decidendi: Reassessment cannot be sustained where it is based on the same facts already examined in the original assessment and merely reflects a change of opinion; any addition made without affording reasonable opportunity is also unsustainable.

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