2025 (6) TMI 1417

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.... of income on 27.10.2013 for the Assessment Year 2013-2014 declaring a total income of Rs. 64,77,470/-. The return was processed under Section 143(1) of the Income Tax Act, 1961 ["the said Act"]. Subsequently, the case was selected for scrutiny and notice dated 11.9.2014 was issued under Section 143(2) of the said Act. Notice contained a long list of 15 questions to be answered by assessee. Admittedly, assessee replied to the notice and provided all details. Subsequently, the assessment was completed and an assessment order dated 24.2.2016 under Section 143(3) of the said Act was passed. 2. Thereafter, assessee received a notice dated 13.3.2020 under Section 148 of the said Act stating that there was reason to believe that income liable to....

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....reason of the failure on the part of assessee to disclose fully and truly all material facts. 5. Counsel submitted that the re-opening pertains to Assessment Year 2013-14 and even the original notice allegedly under Section 148 of the said Act is dated 13.3.2020 and, therefore, certainly the proviso to Section 147 of the said Act shall apply. 6. Mr.Ramaswamy, in fairness, agreed. 7. From the reasons quoted above, it is quite clear that there has been no failure to disclose. It is because the reason itself says "The assessee had claimed an expenditure of Rs. 42,42,505/- towards bad debts written off in his profit & loss account ... However it is found that this amount ... had also been shown as provisions in Trial Balance ... Hence, the B....

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....pen the assessment was considered by the Assessing Officer while originally passing the assessment order dated 24.2.2016. This itself demonstrates the fact that notice dated 13.3.2020 under Section 148 of the said Act seeking to re-open the assessment for the Assessment Year 2013-2014 is based on mere change of opinion. It will be pertinent to reproduce paragraph (14) of a judgment of the Bombay High Court in Aroni Commercials Ltd v. Deputy Commissioner of Income-tax-2(1) [(2014) 44 taxmann.com 304 (Bombay)] and it reads as under: "14. We find that during the assessment proceedings the petitioner had by a letter dated July 9, 2010, pointed out that they were engaged in the business of financing, trading and investment in shares and securi....

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....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 proceedings even where he is satisfied then it would be impossible for the Assessing Officer to complete all the assessments which are required to be scrutinised by him under section 143(3) of the Act. Moreover, one must not forget that the manner in which an assessment order is to be drafted is the sole domain of the Assessing Officer and it is not open to an assessee to insist that the asses....