( 1 ) THIS is an appeal under Section 260aofthe Income-tax Act, 1961 (in short, Act) filed by Revenue questioning correctness of the conclusion recorded by the Income- tax Appellate Tribunal (in short, Tribunal) to the effect that action taken under Section 154 of the Act was not legal after issuance of notice under Section 143 (2) of the Act.

( 2 ) FACTUAL position in a nutshell is as follows: for the assessment year 1989-90, due date of filing return was 31. 12. 1989. Assessee filed return on 28. 12. 1989. An intimation in terms of Section 143 (1) (a) of the Act was given to the assessee on 31. 3. 1990 on the basis of return filed. Notice under Section 143 (2) was issued in the month of December, 1990. Subsequently, a notice for taking action under Section 154 of the Act was issued on 28. 2. 1991. Assessee submitted its reply on 21. 3. 1991 taking the stand that there was no scope for taking any action under Section 154. On 27. 3. 1991, revised return was filed by the assessee. Rejecting the assessee s plea that after issuance of notice under Section 143 (2) of the Act, as well as on facts, there was no case for resorting to Section 154 an order under Section 154 wa