The assessee had claimed deduction under section 10B in its return, but the claim was disallowed while processing the return under section 143(1). Subsequently, in regular assessment proceedings under section 143(3), the Assessing Officer examined and allowed the deduction. The High Court held that, after detailed examination of the claim in regular assessment, the earlier prima facie adjustment under section 143(1) could not survive. Further, a debatable issue or an issue requiring detailed examination cannot be subjected to a prima facie adjustment under section 143(1). The subsequent rectification order was also held to be infructuous and barred by limitation. The Court also directed the  Revenue to refund the amount as adjusted against the outstanding demand with applicable interest in a time-bound manner within a period of eight weeks.  (AY. 2008-09)