2025 (8) TMI 1693

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.... facts and circumstances of the case and in law, Ld. ITAT was justified in setting aside the order dated 30.03.2023 passed by Ld. PCIT under Section 263 of the Act of 1961 by which it was held that the order passed by AO was erroneous and so far as prejudicial to the interest of revenue? (2) Whether in the facts and circumstances of the case and in law, Ld. ITAT was justified to hold that Section 14A of the Act of 1961 is not applicable on insurance companies? (3) Whether in the facts and circumstances of the case and in law, Ld. ITAT was justified in ignoring that Section 44 of the Act of 1961, which deals with computation of income of Insurance Companies, does not exclude the application of Section 14A of the Act of 1961? (4) Whe....

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....ssee. The assessee challenged this order before the Income Tax Appellate Tribunal, Jaipur (hereinafter referred to 'the ITAT'), which by an order pronounced on 28th June 2023, set aside the order of PCIT. It is that order of the ITAT that is in question before us. 5. In the assessment order dated 01st March 2021, the Assessing Officer raised following three issues: (i) Claim of Any Other Amount Allowable as Deduction in Schedule BP (ii) ICDS Compliance and Adjustment (iii) Expenses Incurred for Earning Exempt Income" Thereafter, assessment order also mentions that notices were issued by the department and assessee furnished information as called for. The Assessing Officer further says that information furnished in respect to the ....

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....s that income of insurance business is required to be computed in accordance with First Schedule of the Act. 9. Admittedly, assessee has also given further explanation as to the non-applicability of Section 14A of the Act. 10. Assessing Officer was satisfied with the explanation and hence, did not even consider it necessary to mention it as an issue in the assessment order. 11. A Division Bench of Bombay High Court in Aroni Commercials Ltd. Versus Deputy Commissioner of Income-Tax and Another [2014] 362 ITR 403 (Bom) has held that once a query is raised during the assessment proceedings and assessee has replied to it, it follows that the query raised was a subject of consideration of the Assessing Officer while completing the assessment....

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...., according to Mr. Chhotaray, learned Counsel for the revenue, the aforesaid issue now raised has not been considered earlier as the same is not referred to in the assessment order dated October 12, 2010, passed for the assessment year 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 assess....