Change of opinion in reassessment defeats reopening beyond four years when original scrutiny had already examined the same issues.

Reassessment beyond four years from the end of the assessment year is described as invalid where the original scrutiny had already examined the same issues and no fresh tangible material emerged later. The text states that matters relating to tax deduction at source and a write-off claim had been specifically called for, disclosed and considered in the original assessment, so reopening on those grounds amounted to a change of opinion. Its stated legal effect is that a notice under Section 148 and the order rejecting objections cannot be sustained in such circumstances and are liable to be quashed.

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Issues: Whether reassessment under Section 148 of the Income-tax Act, 1961 for Assessment Year 2012-13, initiated after the expiry of four years from the end of the assessment year, was valid in the absence of fresh tangible material and where the issues had already been examined in the original scrutiny assessment.

Analysis: The return had been subjected to scrutiny under Sections 142(1), 143(2) and 143(3) of the Income-tax Act, 1961. The assessment record showed that the very matters relied upon for reopening, including the deductibility of tax at source under Section 194C and the claim of advance/deposit written off, had already been called for, disclosed, examined and dealt with in the original proceedings. No new material was shown to have come to the Assessing Officer after completion of the assessment. In such circumstances, reopening beyond four years could not be sustained, as it amounted to a mere change of opinion.

Conclusion: The reopening notice and the order disposing of objections were invalid and were quashed. The issue was decided in favour of the assessee.

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