THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE B.N.RAO NALLA R.C.NO.11 OF 2000 ORDER: (Per the Hon’ble Sri Justice V.V.S.Rao) The sole question referred to this Court under Section 256(1) of the Income Tax Act, 1961 (“the Act” for brevity) at the instance of the Revenue reads as under. “Whether on the facts and in the circumstances of the case, the ITAT was correct in law in deleting the adjustment made in the order passed u/s.154 holding that as no prima facie adjustment was made in the intimation sent under sec.143(1)(a), it was non-est and the rectification made on such non-existing intimation was bad in law?” The respondent (hereafter, the assessee) filed the return of income for the assessment year 1989-90 admitting loss. The same was processed under Section 143(1)(a) of the Act and the assessing officer sent an intimation on 30.03.1990. Nevertheless, he issued a notice under Section 154 of the Act expressing intention to rectify the intimation by disallowing the excess entertainment expenditure under Section 37(2A) of the Act. In spite of the objections, the intimation was rectified, aggrieved by which, the assessee unsuccessfully filed an appeal before the CIT(A). Against the dismissal order dated 06.03.1995 of the CIT(A), the assessee went in appeal before the appellate Tribunal. By order dated 17.10.1996, the appeal was allowed by the Tribunal cancelling the rectification. The Revenue then sought reference of question of law as noticed hereinabove. In R.C.No.257 of 1996, this Bench considered similar question today. After referring to the decision in Asst. CIT v. Rajesh Jhaveri Stock Brokers P. Ltd. [1], this Court answered reference in favour of the assessee. Following our decision in R.C.No.257 of 1996, the question is answered in the affirmative in favour of the assessee and against the Revenue. The RC shall stand disposed of accordingly, without any order as to costs. _______________ (V.V.S.RAO, J) ____________________ (B.N.RAO NALLA, J) 28th December 2011 RRB [1] (2007) 291 ITR 500 (SC)