Notices for 1992-95 quashed due to opinion change and time bar; 1997-98 notice upheld as timely and valid. Costs self-borne.

The court quashed the notices issued for the assessment years 1992-93, 1993-94, and 1994-95, finding them invalid due to being based on a mere change of opinion and barred by limitation. However, the notice for the assessment year 1997-98 was upheld as it was issued within the permissible time frame and not based on a mere change of opinion. Each party was directed to bear its own costs.

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Issues Involved:
1. Validity of notices issued under section 147/148 of the Income-tax Act for the assessment years 1992-93, 1993-94, 1994-95, and 1997-98.
2. Entitlement of the petitioner to deductions under section 80-O of the Income-tax Act.
3. Whether the initiation of proceedings under section 147 constitutes a mere change of opinion.
4. Whether the notices issued were barred by limitation.

Issue-wise Detailed Analysis:

1. Validity of Notices Issued Under Section 147/148:
The petitioner challenged the notices dated October 25, 2000, and September 4, 2000, issued under section 147/148 of the Income-tax Act for the assessment years 1992-93, 1993-94, 1994-95, and 1997-98. The petitioner argued that the jurisdictional foundation for initiating proceedings under section 147 was absent, as it was merely a change of opinion by the subsequent assessing authority. The respondent argued that the petitioner was not entitled to deductions under section 80-O, and the wrongful claims resulted in escaped assessments.

2. Entitlement to Deductions Under Section 80-O:
The petitioner claimed deductions under section 80-O for commissions received from foreign enterprises for services rendered outside India. The assessing authority initially allowed these deductions after considering the petitioner's claims and supporting documents. However, the respondent later argued that the petitioner was merely an agent of foreign publishers and not entitled to such deductions.

3. Change of Opinion:
The court examined whether the initiation of proceedings under section 147 was based on a mere change of opinion. It was noted that the assessing authority had previously allowed the deductions after full scrutiny. The court referred to various judgments, including Jindal Photo Films Ltd. v. Deputy CIT, CIT v. Kelvinator of India Ltd., and CIT v. Foramer France, which held that reassessment proceedings could not be initiated on a mere change of opinion. The court found that the initiation of proceedings for the assessment years 1992-93, 1993-94, and 1994-95 was based on a mere change of opinion and was, therefore, invalid.

4. Notices Barred by Limitation:
The court noted that the notices for the assessment years 1992-93, 1993-94, and 1994-95 were issued after the expiry of four years from the end of the relevant assessment years. The court held that these notices were barred by limitation as there was no failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessment. However, the notice for the assessment year 1997-98 was issued within four years, and the court upheld its validity as it was based on relevant considerations and not a mere change of opinion.

Conclusion:
The court quashed the notices dated October 25, 2000, for the assessment years 1992-93, 1993-94, and 1994-95, as they were based on a mere change of opinion and barred by limitation. However, the notice dated September 4, 2000, for the assessment year 1997-98 was upheld. The parties were left to bear their own costs.

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