JUDGEMENT

S.H. Kapadia, J. —

1. Heard learned counsel on both sides.

2. A short question which arises for determination in this batch of civil appeals is, whether the concept of “change of opinion” stands obliterated with effect from 1st April, 1989, i.e., after substitution of Section 147 of the Income Tax Act, 1961 by Direct Tax Laws (Amendment) Act, 1987?

3. To answer the above question, we need to note the changes undergone by Section 147 of the Income Tax Act, 1961 [for short, “the Act”]. Prior to Direct Tax Laws (Amendment) Act, 1987, Section 147 reads as under:

“Income escaping assessment. 147. If—

[a] the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under section 139 for any assessment year to the Income-tax Officer or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or

[b] notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Income- tax Officer has in consequence of information in his possession reason to believe that income