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TMI Blog2024 (2) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... H COURT] 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. Therefore, there can be no doubt that the very issue of share premium was subject matter of consideration by the AO during the original assessment proceedings, which would mean that reopening of assessment is merely on the basis of change of opinion of the AO from that held earlier during the course of the assessment proceedings. This change of opinion does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. Thus the reopening of the assessment for AY 2014-15 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed. One of the reasons for picking up the return of income for scrutiny assessment as stated in the assessment order is large share premium during the year. 3. Later, Petitioner received a notice dated 22nd March 2019 under Section 148 of the Act alleging that there is reason to believe that Petitioner's income has escaped assessment for AY 2014-15. Petitioner was provided the reasons for reopening vide communication dated 17th August 2019. Petitioner filed its objections by a communication dated 30th August 2019, which came to be rejected by a letter dated 20th November 2019. Since the order disposing Petitioner's objections was without any reasons, Petitioner filed a Writ Petition in this Court being Writ Petition No. 3417 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the actual figures and figures considered for valuation of shares. He submitted that company has taken highly inflated figures for the purpose of valuation of shares. Mr. Suresh Kumar further added that there appears vast difference in valuation adopted by Petitioner and performance and the valuations have been made with projections that are arbitrary figures merely to suit the value of shares adopted at the time of transfer to avoid taxation under Section 56(2)(viib) of the Act. Mr. Suresh Kumar submitted that the projections in the figures have no basis at all and it has been done only to justify the premium collected to avoid paying income tax. 6. The fact that the issue of large share premium issued during the year was the subject ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear Windsteel Pvt. Ltd. 7. Subsequently, during the assessment proceedings, Petitioner also filed a letter dated 15th September 2016 by which Petitioner submitted a copy of share valuation certificates for allotment during the AY 2013-14. Copies of the documents are also annexed to the said letter dated 15th September 2016. 8. Therefore, the subject matter of large share premium received during the year was under active consideration of the Assessing Officer ( AO ) during the assessment proceedings. As held by Division Bench of this Court in Aroni Commercials v. Deputy Commissioner of Income Tax (2)(1) [2014] 44 taxmann.com 304, once a query is raised during the assessment proceedings and the assessee has replied to it, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Ltd. v. Dy. CIT [2014] 44 taxmann.com 304/224 Taxman 13 (Mag.)/362 ITR 403 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 . (emphasis supplied) 9. Therefore, in our view, the reopening of the assessment for AY 2014-15 is not justified. In view of this finding of ours, we do not consider it necessary to go into the other issues on determination of fair market value, etc. 10. Rule made absolute. Petition disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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