Original assessment was completed u/s 143(3) of the Act. After four years, reassessment notice was issued to make disallowance under S. 40(a)(ia) of the Act for reason that assessee had not deducted tax at source on payments made towards job work charges, labour charges and rent on the basis of audit objection. AO replied  twice to the Audit officer that there was no justification for reopening of assessment and yet it was only on insistence of Addl. Commissioner (Audit) that AO changed his opinion and reopened the assessment. On appeal, CIT (A) and Tribunal held that the reopening by the AO was merely on basis of the change of opinion and, was unjustified. On appeal by the revenue, the Court held that twice the AO replied that the Assessment was done correctly hence requested the Audit party to treat the issue as settled.  When the third time the Audit party wrote to the AO to take remedial action  the AO has issued the notice u/s 148 of the Act. Court held that the notice was issued on the basis of audit information hence the reassessment is held to be bad in law. (AY. 2006-07)