Sanand Properties P. Ltd. vs. JCIT: Reopening assessment based on fresh information uncovering the true nature of transactions is valid and not a change of opinion.

6. Sanand Properties P. Ltd. Vs. JCIT - (2026) 488 ITR 337 –SC

Reopening of assessment - Mere disclosure at the time of original assessment does not preclude the Assessing Officer from reopening the assessment where fresh information emerges which prima facie indicates that certain income has escaped assessment.

Reason to believe - It is immaterial whether the Assessing Officer, at the time of making the original assessment, could or could not have found, through further enquiry or investigation, whether the transaction was genuine or not, if, on the basis of subsequent information, the Assessing Officer has reasons to believe that income chargeable to tax has escaped assessment.

To constitute a "change of opinion", there must first be a conscious application of mind and formation of an opinion during the original assessment proceedings.

The validity of a reopening must be tested solely on the basis of the reasons recorded at the time of issuing the notice under Section 148.

SPPL, a private limited company, had entered into an agreement dated 29.04.2003 with M/s. Raviraj Kothari & Co. (hereinafter referred to as "RKC") to constitute an Association of Persons (“AOP”) tit