TaxTMI 
TaxTMI 
2024 (1) TMI 865
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....ugning a notice dated 30th March 2021 issued under Section 148 of the Income Tax Act, 1961 (the Act) for Assessment Year 2017-2018. 2. Petitioner is engaged in the business of real estate development and construction. For Assessment Year 2018-2019 petitioner filed its return of income on 30th October 2017, which was revised on 1st June 2018, declaring a total loss of Rs. 1,41,16,482/-. Petitioner's case was selected for scrutiny assessment and notices were issued under Section 142(1) read with Section 129 of the Act. Petitioner responded to the notices and also filed documents. An assessment order dated 20th December 2019 came to be passed in which petitioner's loss was assessed at Rs. 1,05,42,877/-. 3. Subsequently petitioner receive....
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....hence the amount of financial cost of Rs. 5,67,95,525/- along with depreciation of Rs. 19,03,026/- and other expenses of Rs. 18,02,593/- should be capitalized as preliminary expenses under the head work in progress. The fact was not verified by the assessing officer while finalizing the assessment. The same has not been brought to the notice of the assessing officer by the assessee with a view to conceal the above facts from the assessing officer 3. In view of the above, amount of financial cost of Rs. 5,67,95,525/- has to be disallowed and added to the total income of the assessee. 4. Hence, it is clear that there is failure on the part of assessee to disclose fully and truly all material facts necessary for the assessmen....
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.... no business activity during the year under consideration and the project was yet to be commenced, the financial cost alongwith depreciation and other expenses should be capitalised 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 c....
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....an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. The only requirement is that the Assessing Officer ought to have considered the objection now raised in the grounds for issuing notice under Section 148 of the Act during the original assessment proceedings. Therefore, it is obvious that the reopening of the assessment by impugned notice dated 30th March 2021 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 assessment order dated 20th December 2019. This change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escap....
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....or 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 required to be scrutinized by him under Section 143(3) of the Act. Moreover, one must not....