TAMIL NADU MAGNESITE LTD Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) The short question which arises for consideration is, "whether an order of rectification under Section 154 of the Income Tax Act could be passed to rectify the intimation given under Section 143(1)(a) of the Act, after a final assessment order under Section 143(3) of the Act has been passed."

(2.) The petitioner is a 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.

(3.) While so, later on, the second respondent issued a notice under Section 154 of the Act, with a view to rectify the original intimation dated 07.03.1994 issued under Section 143(1)(a) of the Act. The petitioner objected to the same. Rejecting the said objection, the second respondent passed an order of rectification on 14.12.1998 thereby levying an additional income tax to the tune of Rs. 4,70,346/ -. Aggrieved over the said order, the petitioner preferred a revision under Section 264 of the Act to the first respondent. The said revision was also dismissed. Challenging the same, the petitioner has come forward with this writ petition.