TMI Blog2022 (1) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration by the AO during the original assessment proceeding leading to an order dated 17th March, 2006. It would, therefore, follow that the reopening of the assessment by the impugned notice dated 26th March, 2008 is merely on the basis of change of opinion of the Assessing Officer from that held earlier during the course of assessment proceeding leading to the order dated 17th March, 2006. This change of opinion does not constitute justification and/or reasons to believe that the income chargeable to tax has escaped assessment. We have to also add that item No. 5 in the reasons noted above includes item No. 3 mentioned earlier. Moreover, in the assessment order a sum of ₹ 57,16,601/- out of ₹ 31,40,96,154/- has already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made full and true disclosure of all material facts but there has also been full application of mind by respondent No. 1 at the stage of passing original assessment order under section 143(3) of the Act. 3. In respect of the assessment year 2003-2004 Petitioner had filed return of income on 27th November, 2003 in which petitioner disclosed a total loss of ₹ 24,08,76,434/-. With the said return Petitioner filed statement of income, profit and loss account, balance sheet and its schedules, annual report, tax audit report in Form 3CA and Form 3CD. Petitioner received a notice dated 17th February, 2006 from respondent No. 1 under section 142 of the Act together with a questionnaire also dated 17th February, 2006 by which Petitioner wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Officer while completing the assessment, it is not permissible on the same set of facts to reopen the assessment to take another view. Mr. Gandhi submitted that the change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. 5. We have considered the reasons for reopening the assessment with the assistance of Mr. Gandhi and Mr. Suresh Kumar. 6. The assessment is proposed to be opened within four years from the end of relevant assessment year and therefore the proviso to section 147 of the Act then in force would not apply. The Assessment Officer has to only show that there was some tangible material that give reasons to believe that income chargeable to income t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and we are satisfied that on each of these five items, query was raised by the Assessing Officer in the notice dated 17th February, 2006 issued under section 142(1) of the Act and for each of these items, explanation has been given by petitioner in its letter dated 7th March, 2006. In fact, in the assessment order, the Assessing Officer records the fact that the notice under section 142(1) along with the questionnaire was issued to Petitioner on 17th February, 2006 and response was filed thereto. In fact, items No. 1, 3 and 5 of the reopening noted above has been discussed in the assessment order dated 17th March, 2006. As regards the items No. 2 and 4 which does not find mention in the assessment order, the effect of non mention has been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 on all issues raised by him during the assessment proceeding even where he is satisfied then it would be impossible for the Assessing Officer to complete all the assessments which are requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a subject for consideration of the Assessment Officer while completing the assessment. It is not necessary that an assessment order should contain reference and/or discussions to disclose its satisfaction in respect of the query raised. There can be no doubt that in the present facts, the five points mentioned above, was a subject matter of consideration by the Assessing Officer during the original assessment proceeding leading to an order dated 17th March, 2006. It would, therefore, follow that the reopening of the assessment by the impugned notice dated 26th March, 2008 is merely on the basis of change of opinion of the Assessing Officer from that held earlier during the course of assessment proceeding leading to the order dated 17th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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