Allowing the petition the Court held that, the reasons recorded established that the AO was proceeding on the basis of material already on record. Apart from there being no allegations even in the reasons recorded that there was any failure on the part of the assessee to disclose true and full material facts, in fact, at every important stage, the AO had referred to and relied upon the material on record. There was not a single item, no document or material which did not form part of the original assessment proceedings on the basis of which the AO had formed a belief that the income chargeable to tax had escaped assessment. The assessee had furnished the necessary details before the AO of the said amount having been shown in the profit and loss account but not offered it to tax. If during the original assessment proceedings, the AO desired to inquire further into this claim of the assessee, nothing prevented him from doing so. The second ground raised by the AO suffered from factual error and non-application of mind on his part. The AO now could not contend that this issue was debatable or was a factual aspect. On the third ground raised by him the AO had proceeded solely on the basis of material already on record clearly debarring his jurisdiction for issuing notice of reassessment beyond four years. The notice of reassessment was not valid. (AY. 2011-12)