No change of opinion if AO not examined or applied his mind on a particular issue – Delhi HC- Commissioner of Income-tax-VI, New Delhi v. Usha International Ltd.

No change of opinion if AO not examined or applied his mind on a particular issue-HC

There may be cases where the Assessing Officer does not and may not raise any written query but still the Assessing Officer in the first round/ original proceedings may have examined the subject matter, claim etc, because the aspect or question may be too apparent and obvious. To hold that the assessing officer in the first round did not examine the question or subject matter and form an opinion, would be contrary and opposed to normal human conduct. Such cases have to be examined individually. Some matters may require examination of the assessment order or queries raised by the Assessing Officer and answers given by the assessee but in others cases, a deeper scrutiny or examination may be necessary. The stand of the Revenue and the assessee would be relevant. Several aspects including papers filed and submitted with the return and during the original proceedings are relevant and material. Sometimes application of mind and formation of opinion can be ascertained and gathered even when no specific question or query in writing had been raised by the Assessing Officer. The aspects and questions examined during the course of assessment proceedings itself may indicate that the Assessing Officer must have applied his mind on the entry, claim or deduction etc. It may be apparent and obvious to hold that the Assessing Officer would not have gone into the said question or applied his mind. However, this would depend upon the facts and circumstances of each case.

HIGH COURT OF DELHI
Commissioner of Income-tax-VI, New Delhi
v.
Usha International Ltd.
IT Appeal NO. 2026 of 2010
September 21, 2012

Please click on the link below for you reference

Income Tax Case Law-No change of opinion if AO not examined or applied his mind on a particular issue-HC

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