Allowing the petition the Court held that while passing the original assessment the Assessing Officer considering the very same material as well as the information provided and the court orders formed an opinion that it was case of amalgamation. Thereafter, he again formed an opinion that the transaction did not come under the purview of section 2(1B) of the Act and it was an ordinary takeover of business by acquiring shares. The Assessing Officer in his assessment order had specifically considered that the quantum of accumulated unabsorbed losses of the amalgamating company. In the original assessment order itself, the assessment authority made a finding regarding unabsorbed depreciation of the amalgamating company. The details were furnished and the assessing authority had taken into consideration all these facts. The Department could not establish that there was a failure on the part of the assessee to disclose fully and truly all material facts. The notice of reassessment was not valid. (AY. 2005-06)