2010 (8) TMI 658

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.... Government of Tamil Nadu undertaking. It is an income tax assessee. For the accounting year ended with 31.03.1993, the petitioner submitted the tax return admitting Nil income. The said return was accepted by the second respondent on 07.03.1994 by issuance of an intimation in terms of Section 143(1)(a) of the Income Tax Act, 1961. Subsequently, the second respondent issued a notice under Section 143(2) of the Act on 31.03.1994. The petitioner later on filed a revised return of the income on 04.07.1995 wherein, the deduction originally claimed for the provisions created for bonus and gratuity was reversed. The second respondent acting on the revised return, completed the scrutiny assessment under Section 143(3) of the Act on 22.11.1995. &nb....

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....sing Authority to invoke his jurisdiction under Section 154 of the Act to rectify the intimation under Section 143(1)(a) of the Act notwithstanding the fact that subsequent to the said proceeding, a final assessment order has been passed under Section 143(3) of the Act.   6. The learned counsel for the petitioner would rely on a judgment of the Hon ble Supreme Court in Commissioner of Income Tax v. Gujarat Electricity Board (2003 ITR (Vol.260) 84) wherein, it has been held as follows:-   Even otherwise, the view taken by the Gujarat High Court seems to be correct on principle. There is no dispute that section 143(1)(a) of the Act enacts a summary procedure for quick collection of tax and quick refunds. Under the scheme if th....

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....r High Courts. The relevant portion of the said judgment is extracted below:-   A further question therefore arises whether summary assessment or the provisional assessment or to be more precise, the assessment made on the basis of the return itself under Section 143(1)(a) of the Act accepting appropriation to contingency reserve as an allowable expenditure merged in the order passed under section 143(3) of the Act wherein the aforesaid appropriation to contingency reserve was disallowed ? What was accepted in the intimation has been reversed in the regular assessment and the assessee has preferred an appeal which is pending. I am firmly of the view that this is a case where the theory of merger is bound to apply because the intimat....