TMI Blog2016 (2) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... f the as sessing officer. The learned Senior Advocate would point out that it is the settled law that if the assessee has brought the issue to the attention of the assessing officer and even though there may be no consideration in the course of the assessment order on the issue which is highlighted by the assessee, it is deemed to have been considered by the assessing officer. In this regard, reliance is placed on a full bench decision of the Delhi High Court in the case of Commissioner of Income-tax vs. Usha International Limited, (2012 (9) TMI 767 - DELHI HIGH COURT). - Decided in favor of assessee. - Writ Petition No. 6565, 6566 of 2015 (T-IT) - - - Dated:- 11-2-2016 - Anand Byrareddy, J. For the Appellant : Shri K.P.Kumar, Senio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision were raised by the assessing officer and being satisfied that no disallowance was called for, the assessment was said to have been completed allowing the deduction claimed by the petitioner. The petitioner has subsequently learnt that an audit objection was raised by the Audit Officer on the basis that the deduction in respect of the aforesaid provision ought not have been allowed. Simultaneously, the petitioner s assessment for the assessment year 2009-10 was said to be under process and the assessing officer had raised a specific query as regards the provision for liability towards the unredeemed loyalty points. The petitioner is said to have explained in detail on the accounting as well as tax treatment, on account of which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade and there was an opinion formed at the time of the original assessment and subsequently, during the audit objection raised. Moreover, the financial statements of the petitioner for the period ended 31.03.2008 had clear disclosures on the said provision. Therefore, there can be no justification for reopening of an assessment after four years from the end of the relevant assessment year. The petitioner filed objections as regards the first respondent s jurisdiction to re-open the assessment, which were rejected on 10.01.2015. The first respondent sought to justify the same by contending that the earlier assessing officer had not examined the issue with due diligence, which according to the petitioner, is incorrect. 4. The department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct legal proposition. In the case of loyalty programme, the liability arises only when the claim for redemption is made. Any liability which is not accrued within the year end or there is nothing on record to remotely indicate that the entry is based on an event accruing after the date of balance sheet, it cannot be allowable as crystallized liability. Hence, in the instant case, the liability is a contingent liability. It is contended that the liability accrues only when the customer makes a claim for redemption. It is in this vein that the petition is sought to be contested. 5. However, the learned Senior Advocate would submit that the entire premise on which the petitions are sought to be contested is that there was an audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us held that the objection was not acceptable. This letter however, it is claimed by the learned Counsel for the respondents was overlooked. 6. Having regard to the audit objection having been addressed by the assessing officer, there would remain no basis for reassessment four years after the assessment order, when the audit objection has been met by the assessing officer as per the letter referred to above. In these two petitions which pertain to the assessment years 2008-09 and 2009-10, though the proposal to reopen the assessment order is passed within four years, having regard to the explanation that is forthcoming from the assessing officer as regards the audit objection raised, there is substance in the contention of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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