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Assuming that no news is good news, we did not bother to find out about his whereabouts.
(A) Assuming that no news is good news, we
correct (B) Assuming that no news was good news, we
present tense is needed (C) We assumed that no news was good news and
present tense is needed (D) On assuming that no news is good news, we
On does not give any additional information...so just assuming should be preferred
(E) Assuming no news to be good news, we
That is needed as subjective mode is correct over here (please let me know if assumption can be taken under subjective mode)