The sole issue involved is whether reassessment proceedings can be initiated after a period of 4 years from the end of the relevant assessment year when complete disclosure was made regarding the issue at hand by the Assessee during scrutiny assessment under section 143(3) of the Act.

The Hon’ble Tribunal drawing reference to a catena of judgements, quashed the reassessment notice and set aside the reassessment proceedings on the reasons that (i) There was nothing on record to establish that there was any failure on the part of the Assessee to disclose fully and truly all material facts necessary for the assessment; (ii) Relevant queries were made on the issue at hand during the course of assessment proceedings and the Assessee had duly replied to the same; (iii) The instant proceedings were reopened by way of ‘change of opinion’ since no fresh material or information had been brought on record by the Assessing Officer to show that there had been escapement of income due to failure on part of the Assessee to truly and fully disclose all material facts; (iv) The reassessment proceedings were initiated only on re-appreciation of same documents which were available with the Assessing Officer at the time of original assessment.  (AY.  2008-09)