The AO passed assessment orders accepting the assessee’s claim to exemption of interest on fixed deposits . After four years a notice of reassessment was served on the assessee. The recorded reasons by the AO stated that the reopening of assessment of the relevant assessment years was based on a subsequent judgment dated January 14, 2013, of the Supreme Court in the case of Bangalore club v. CIT( 2013) 350 ITR 509 (SC) holding that income earned by way of interest from corporate members of a club is taxable income and does not come under the ambit of the mutuality principle. On a writ the Court held that  the Department could not establish that the income in question which had allegedly escaped assessment was not disclosed during the course of original assessment proceeding or that it was not taken into consideration by the Assessing Officer at the time of passing of the assessment order under section 143(3) or that the proceeding for reassessment under section 147 of the Act was initiated within four years or that the recorded reasons specifically stated that there was any omission or failure on the part of the assessee to disclose fully and truly all the material facts necessary for assessment in the relevant assessment year. A subsequent decision of the Supreme Court reversing the legal position existing at the time of passing of the assessment order could not be called an omission or failure on the part of the assessee to disclose fully and truly the material fact necessary for the relevant assessment. The notice of reassessment was not valid.( AY.2007-08, 2008-09)