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Section 154 of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from record - Whether intimation issued under section 143(1)(a) can be rectified under section 154 after issuance of a notice under section 143(2) for regular assessment - Held, no FACTS The petitioner-company filed returns for the assessment years 1990-91, 1992-93, 1993-94, 1994-95 and 1995-96, claiming deductions on account of appropriation to contingency reserve account. The Assessing Officer duly accepted the returns and issued intimation under section 143(1)(a) up to the assessment year 1994-95. In respect of each of the aforesaid assessment years, notices under section 143(2) were issued and regular assessment under section 143(3) disallowing the appropriation to contingency reserve was made for the assessment years 1990-91 and 1992-93, against which appeals preferred by the petitioners were pending. In respect of the assessment years 1993-94 and 1994-95, notices under section 143(2) were issued. The regular assessment in respect of the aforesaid two years was, however, pending. The department relying on the Apex Court's decision in the case of Associated Power Co. Ltd. v. CIT [1996] 218 ITR 195/ 84 Taxman 355, wherein it was held that appropriation to contingency reserve account is not an allowable business expenditure, issued notices under section 154 seeking rectification of summary assessment made under section 143(1)(a) for the assessment years 1990-91, 1992-93, 1993-94 and 1994-95 on ground of mistake apparent from record. The petitioner submitted that the said of the Apex Court was delivered much after the intimation under section 143(1)(a) was issued and, therefore, it was not open to the department to seek rectification of a regular assessment or a summary assessment on ground of mistake apparent from the record based on a subsequent decision of the Court. An additional ground was also advanced stating that once notices under section 143(2) were issued calling upon assessee to produce evidence in support of its return for a regular assessment, intimation issued under section 143(1)(a) could not be rectified under section 154. It was, therefore, submitted that notices…

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