TMI Blog2021 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment, it is settled law that it is not necessary that an Assessment Order should contain reference and / or discussion to disclose its satisfaction in respect of every item. If the AO has materials before him but has not chosen to deal with that in his Assessment Order, he is deemed to have accepted the explanation or returns of the assessee. We find support for this view in Aroni Commercial Ltd . [ 2014 (2) TMI 659 - BOMBAY HIGH COURT] It is settled law that an Assessing Officer cannot reopen an assessment even within a period of 4 years merely on the basis of a change of opinion. In this case, the assessment is sought to be reopened after a period of 4 years and hence the proviso to Section 147 of the Act is applicable whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the returned income as assessed income of the assessee. 2. On perusal of records, it is seen that the assessee efiled its return of loss of ₹ 9,64,40,929/- after claiming deductions under section 36(1)(viia) of the Act of ₹ 39,54,111/- and under section 36(1)(vii) of the Act of ₹ 14,52,46,544/-. The same was accepted in the assessment order passed u/s 143(3) of the Act. It is however seen from the balance-sheet of the assessee that the assessee has an opening credit balance of ₹ 30,67,40,535/- in Bad and Doubtful Debts reserve. Hence, the assessee was not entitled to claim deduction u/s 36(1)(vii) of ₹ 14,52,46,544/-. Omission to disallow the same has resulted into under assessment of ₹ 14,52,46,54 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Assessing Officer, Petitioner was not entitled to claim deduction under Section 36(1)(7) of ₹ 14,52,46,544/-. It is therefore plain and clear that the Assessing Officer has issued notice after considering the balance-sheet filed by assessee and it is, in our view, nothing but change of opinion. 3. In the Affidavit-in-Reply, it is admitted that during the assessment proceedings, Petitioner, vide his submissions dated 16/12/2014, furnished the details of bad debts written off of ₹ 14,52,46,544/- along with parties' name, address, loan outstanding amount, copy of AGM Resolution dated 17/07/2021 and Auditor's Certificate. Therefore, all these materials were before the Assessing Officer when the assessment was init ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 147 of the Act is applicable which stipulates a requirement that there must be a failure on the part of the assessee to disclose fully and truly all material facts necessary. It is also settled law that the Assessing Officer has no power to review an assessment which has been concluded. In our view, in the reasons for reopening of assessment, there is not even a single ground for reopening mentioned. As noted earlier, the entire basis for reopening is based on the balance-sheet which has been filed by Respondents. In the circumstances, we have to hold that the impugned notice dated 31/03/2019, order dated 30/11/2019 and further notice dated 30/11/2019 require to be set aside and are hereby set aside. 6. Petition disposed accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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