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2022 (1) TMI 543 - HC - Income TaxReopening of assessments u/s 147 - change of opinion - eligibility of reasons to believe - payment made on account of reimbursement of payroll expenses to subsidiaries incurred outside India and paid to Oracle Financial Services Software INC on behalf of petitioner - HELD THAT:- The documents expressly mention that since the payment is to be made on account of reimbursement only, no tax is required to be deducted. Therefore, a query has been raised and it has been answered. An order under section 92CA(3) of the Act was passed by TPO. Shri Sharma submitted that the order under section 92CA(3) is only concerning whether the amount paid to the companies outside India was correct. Of course, Shri Sharma is correct but what is relevant to note is that this subject has also been discussed by the TPO in his order dated 20th September 2016 (internal page 8). TPO’s order finds a mention and reference in the impugned order dated 27th February 2017 at paragraph 4.1.2 and paragraph 4.1.3. Therefore, entire issue regarding petitioner paying huge reimbursement cost on account of salary reimbursement cost of its employee every year was in the active consideration before the Assessing Officer. Shri Sharma was right in stating that this issue has not been discussed specifically in assessment order. But it is settled, law as held in Aroni Commercials Ltd. [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 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. We are satisfied that it is nothing but a change of opinion on the part of the new AO, who issued the notice u/s 148 of the Act. Change of opinion does not constitute justification and/or reasons to believe income chargeable to tax has escaped assessment. - Decided in favour of assessee.
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