Reassessment notice was issued for calculation of rate of tax in respect of long term capital gains on sale of shares to be calculated at 20% as against 10% was determined while passing the assessment order. On writ the Court held that, once a query has been raised by the AO through the assessment proceedings and the assessee has responded to the query, it would necessarily follow that the AO has accepted the submission of the assessee with that issue in the assessment order even though the assessment order does not reflect any consideration on the issue. It is settled law that once all the material was placed before the AO and he chose not to refer to the deduction /claim which was being allowed in the assessment order, it could not be considered that the AO had not applied his mind while passing the order. Reassessment notice was quashed.  (WP No. 7388 of 2008 dt. 17-12-2021)