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Section 147 of Income-tax Act, 1961 - Income escaping assessment - General Restrictions placed for reopening assessment require something more than a mere error in original assessment; it requires that there is some factual material or information which can form basis of 'reason to believe' that income has escaped assessment [In favour of assessee] CIT v. Krishna Textiles [2009] 315 ITR 271 (All.) The Assessing Officer must have 'reason to believe' that income has escaped assessment and the 'reason to believe' must be founded upon some information of fact which was not part of the record on which assessment had been originally completed. Reopening should be allowed where there has been any error in the original assessment which has led to income escaping assessment. It is obvious that if the original assessment had been correct and there was no error, reopening would be meaningless. It is thus obvious that reopening of assessment presupposes an error in the original assessment. But the restrictions placed upon the pre-condition for reopening require something more than a mere error in the original assessment. It requires that there is some factual material or information which can form the basis of 'reason to believe' that income has escaped assessment. C.S. Agarwal, Anil Sharma and Shubham Agrawal for the Respondent. JUDGMENT The following question has been referred in this reference : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the Income-tax Officer was not justified to initiate proceedings under section 147(b) of the Act ?" 2. It appears from the record that the Income-tax Officer reopened the assessments under section 147 because, according to him, relief under section 35B has been wrongly allowed in respect of certain expenditure. 3. The law of section 147/148 is well settled by now. Reopening is not permitted on a mere change of opinion on the part of the assessing authority on the same material which was available at the completion of the original assessment. 4. It has been laid down in a catena of decisions that for…

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