Per Shri M.A.A. Khan, JM. - This is an appeal by an assessee from the order of Commissioner of Income-tax (Appeals) Rajasthan-I. Jaipur dated 11-2-1982 confirming the order passed by the Deputy Commissioner (Asst.) under section 154 of IT Act, 1961 [hereinafter referred to as the Act) rejecting assessee’s application for modification of the adjustments made under section 143(1) of the Act.

2. The assessee, assessed in the status of Association of Persons (AOP). returned its income from its country made liquor business and Rum Business (IMF) at Rs. 50,05,190 for A.Y. 1990-91. Income at the above mentioned figure had been calculated in the following manner :—

3. By his intimation dated 24-6-1991 the DC (Asst.) intimated the assessee AOP that its income had been determined at Rs. 1,55,44,250 by making an addition of Rs. 1,05,39,059 by way of adjustment under section 143(1)(a) of the Act. Brief reasons for making adjustment were given as under :—

"Rs. 1,05,39,059 on account of profit has been shown less than 40% of receipts."

Though in the body of the intimation slip it had been mentioned that an explanatory adjustment sheet was being enclosed with the intimation slip yet no such sheet was allegedly received by the assessee. Therefore, by its letter dated 22-7-1991 the assessee objected to the adjustment made in its returned income and also requested the DC (Asst.) to supply the explanatory adjustment sheet to it. The objection and prayer were repeated by yet other letters dated 3-8-1991 and 2-9-1991. By his letter dated 4-9-1991 the DC (Asst.) explained the position to the assessee in para 2 as under :—

"In the said letter you have stated that no adjustment sheet was sent to you along with the intimation sent under section 143(1)(a). Adjustment sheet in annexure III was sent to you which stands on page no. 2 of the intimation slip, but due to mistake it has wrongly been mentioned in the annexure III as 40% of receipts instead of 40% of purchase price. However, calculation adjustment made is as under —

4. The assessee AOP did not feel satisfied with the above intimation sent by the DC (Asst.) and by its application dated 18-9-1991 moved under section 154 of the act required the DC (Asst.) to rectify the mistake made by him in increasing the returned income of the assessee by Rs. 1,05,39,059 as the adjustment made was not covered under section 143(1)(a) of the Act for the reason that the same did not pertain to any arithmetical error or any brought forward loss, allowance, deduction, relief etc. By his order dated 7-10-1991 the DC (Asst.) rejected the said application by observing as under in paras 2 & 3 of his order :-

"I have considered the arguments of the assessee’s A/R and find no force therein. As per para 24.3 and 24.7 of the Circular No. 528 dated 16-12-1988 the d