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The Gujarat HC in 426ITR146 held that reopening on the basis of reanalyzing of the existing material is nothing but a change of opinion and the same is not permissible.

In this case, the assessee besides manufacturing also had a power generation business wherein the profits declared were huge as compared to manufacturing. On reanalysis of the financial statement of the two business, the AO realized that the assessee has not allocated administrative costs, directors remuneration, head office establishment costs to the power business which entitled him to a deduction u/s 80-IA.

Further since in this case, the reopening was beyond four years the action did not succeed because there was no failure by the assessee in disclosing truly and fully all material facts.

The rulings in 320 ITR 561 and 354 ITR 536 also prevent AO to revisit a matter again.

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