COMMISSIONER OF INCOME TAX Vs. ARIHANT INDUSTRIES LIMITED

JUDGEMENT

(1.) CAN proceedings under Section 154 of the Income-tax Act, 1961, for rectification of the intimation under Section 143(1)(a) be initiated after the Assessing Officer has given a notice under Section 143(2) to the assessee ? This is the short question that arises for consideration in this appeal under Section 260A of the Act.

(2.) THE assessee is a public limited company. It filed its return for the assessment year 1990-91. It claimed a deduction of Rs. 1,27,98,515 on account of dividend paid to the various shareholders. On April 16, 1991, the Assessing Officer issued an intimation to the assessee. On February 9, 1992, the Assessing Officer gave a notice under Section 143(2) to the assessee. Almost a year later on January 28, 1993, a notice under Section 154(1)(b) was issued. Soon thereafter, an order dated February 25, 1993, was passed under Section 154(1)(b). Aggrieved by the order, the assessee filed an appeal. On September 7, 1994, the Commissioner of Income-tax (Appeals) accepted the assessee's claim. THE Revenue challenged the order passed by the appellate authority. Vide order dated February 26, 2001, the Tribunal dismissed the appeal. Hence, this appeal under Section 260A of the Act.