TMI Blog2024 (1) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... S compliance. Petitioner was also asked to provide party-wise details of unsecured loans alongwith compliance to requirement of Section 68 of the Act and also party-wise details of loan from NBFCS/others. Petitioner responded to the same and provided the details. Subsequently, petitioner received another notice dated 4th September 2019 u/s 142(1) of the Act calling upon petitioner to provide details of the loans, advances and deposits received and given in the format prescribed and also details of all expenses above Rs. 1 lakh debited under each head of Profit and Loss account alongwith comparative analysis with previous year s figures. Petitioner provided these details. It is true that in the assessment order there is no elaborate discussion regarding these items but there has been disallowance on interest on TDS amount debited to Profit and Loss account. This is an indication that the subject matter of financial cost and other expenses has been discussed during the assessment proceedings. As held in Aroni Commercials Limited [ 2014 (2) TMI 659 - BOMBAY HIGH COURT] once a query is raised during the assessment proceedings and the assessee has replied to it, it follows tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASSESSMENT In the above mentioned case, the assessee has e-filed its return of income of A.Y. 2017-18 on 30/10/2017 declaring total loss of Rs.(-) 1,42,40,038/-. The case was selected for scrutiny and assessment u/s 143(3) of the Act was completed on 20.12.2019 assessing total loss at Rs.(-) 1,05,42,877/-. 2. On perusal of the assessment records of the assessee for A.Y. 2017-18, it is seen that the assessee has taken short-term/long term borrowings in F.Y. 2015-16 which is still outstanding of Rs. 362825259/- on 31st March, 2017. The assessee has not commenced the project as stated in Notes to Accounts that due to delay in commencement of a project with finance cost, the net worth of the company as on 31.03.2017 has become negative and management is quite confident on completion of the said project to continue its business as a going concern. During the year under consideration, the assessee has debited financial costs of Rs. 5,67,95,525/- in Profit and Loss Account and arrived business loss of Rs.(-) 1,41,16,482/- due to above expense. Since there is no business activity during the year under consideration and project is yet to be commenced, hence the amount of finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised as preliminary expenses under the head work in progress. Mr. Suresh Kumar also submitted that even though a query has been raised during the assessment proceedings, the same has not been discussed in the assessment order and, therefore, there is no question of change of opinion. Mr. Suresh Kumar stated that in the order disposing the objections, the Assessing Officer has relied upon certain judgments. 7. During the assessment proceedings, petitioner received a notice dated 21st June 2019 in which petitioner was called upon to provide working of depreciation claimed as per the IT Act and party-wise details (name, address and amount) of interest on unsecured loan claimed at Rs. 96,32,590/- alongwith details of TDS compliance. Petitioner was also asked to provide party-wise details of unsecured loans alongwith compliance to requirement of Section 68 of the Act and also party-wise details of loan from NBFCS/others. Petitioner responded to the same and provided the details. Subsequently, petitioner received another notice dated 4th September 2019 under Section 142(1) of the Act calling upon petitioner to provide details of the loans, advances and deposits received and given in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer also places reliance upon CBDT Circular dated 15 June 2007). It would therefore, be noticed that the very ground on which the notice dated 28 March 2013 seeks to reopen the assessment for assessment year 2008-09 was considered by the Assessing Officer while originally passing assessment order dated 12 October 2010. This by itself demonstrates the fact that notice dated 28 March 2013 under Section 148 of the Act seeking to reopen assessment for A.Y. 2008-09 is based on mere change of opinion. However, according to Mr. Chhotaray, learned Counsel for the revenue the aforesaid issue now raised has not been considered earlier as the same is not referred to in the assessment order dated 12 October 2010 passed for A.Y. 2008-09. We are of the view that once a query is raised during the assessment proceedings and the assessee has replied to it, it follows that the query raised was a subject of consideration of the Assessing Officer while completing the assessment. It is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. If an Assessing Officer has to record the consideration bestowed by him o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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