A decision on a debatable point of law is not a mistake apparent from the record which could be rectified under Section 154 of the Income Tax Act, 1961.

( 1 ) TWO issues are involved in this writ application, namely, (i) the status of an intimation under Section 143 (1) (a) of the Income-tax Act, 1961 (referred to as "the Act"), and (ii) the scope of the power of an Assessing Officer under Sections 154 and 143 (1) (a) of the Act.

( 2 ) THE issues have arisen in the context of the following facts. The assessment year in question is 1991-92. The petitioner filed its return claiming a sum of Rs. 5,76,165 on account of loss on fluctuation of exchange. On March 31, 1992, an intimation was issued to the petitioner under Section 143 (i) (a) of the Act by the Deputy Commissioner of Income-tax accepting the petitioner's return in toto without making any adjustment. According to the petitioner, the Deputy Commissioner erred in certain other respects which are not material for the purpose of this application.

( 3 ) ON May 13, 1992, and May 3, 1993, the Deputy Commissioner issued two notices on the petitioner under Section 143 (2) of the Act calling upon the petitioner to produce books of account, documents and evidence in support of its return. A notice under Section 142 (1) of the Act was also issued. The petitioner complied with the notices. The Deputy Commissioner then made an assessment of the petitioner's income by, inter alia, disallowing the claim of the petitioner on account of loss on fluctuation of exchange. The assessment order is dated March 28, 1994. On April 26, 1994, the petitioner filed an appeal before the Commissioner of Income-tax (Appeals ). During the pendency of the appeal on May 24, 1994, the petitioner received a notice under Section 154/155 of the Act dated April 22, 1994, by which the Deputy Commissioner informed the petitioner that he intended to rectify the order under Section 143 (1) (a) of the Act. The nature of the mistake proposed to be rectified according to the notice was "incorrect allowance of exchange amount". This notice is impugned in these proceedings.

( 4 ) AS far as the first issue is concerned, in my view, an order under Section 143 (1) (a) may or may not be followed by a regular assessment under Section 143 (3 ). The option is with the Assessing Officer. The jurisdiction under Section 143 (1) (a) is limited to the obvious and also to that which is deducible from the return as filed and only when there is no doubt or debate : See judgment of this court dated April 27, 1994 (March 7, 1994 ?) in Matter No. 4101 of 1992 : Modern Fibotex India Ltd. v. Dy. CIT [1995] 212 ITR 496. In such circumstances, the order becomes final in the sense that it is effective for the purposes of raising a demand on the assessee or obliging the Department to make a refund to the assessee.

( 5 ) WHERE, however, the order under Section 143 (1) (a) is followed by a regular assessment under Section 143 (3), the order under Section 143 (1) (a) in so far as it is contrary to the regular assessment under Section 143 (3), ceases to be executable and becomes ineffective.

( 6 ) THE respondent authorities termed the intimation under Section 143 (1) (a) as a provisional assessment. But, according to the respondents, this provisional assessment did not merge with the final assessment and that the order under Section 143 (1) (a) continues to exist justifying the issuance of a notice under Section 154 of the Act. The respondents have relied upon the provisions of Section 143 (1) (b), Section 154 (1) and Section 154 (1a) in this connection.

( 7 ) SECTION 143 (1) (b) does not support the submission of the respondents. Section 143 (1) (b) deals with a situation arising out of the passing of orders under Section 143 (3), etc. , in respect of an earlier assessment year and not in respect of the year in question.

( 8 ) THE petitioner has also relied on an unreported decision in Matter No. . . . . . of 1994 (Philips India Ltd, v. Dy. CIT) where, in a similar situation, the court held that once a final assessment has been made under Section 143 (3), the Assessing Office