TMI Blog1991 (1) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant year. Applicability of the doctrine of merger is the question involved. The petitioner is doing business in the export of coffee ; it also derives interest on deposits and dividend incomes. While computing the total income of the petitioner, the Inspecting Assistant Commissioner had disallowed certain expenses incurred by the petitioner against which the petitioner filed an appeal before the Commisioner of Income-tax (Appeals) who allowed the appeal partly by his order dated, October 1, 1986. Thereafter, the respondent issued a notice under section 263 of the Act, proposing to revise the order of assessment made by the Inspecting Assistant Commissioner on the ground that a sum of Rs. 19,93,855 obtained by the petitioner as re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax (Appeals), the said appellate authority could have dealt with the question of the taxability of the sales tax amount refunded to the petitioner. When this position is not disputed, it follows that the said amount has to be treated as part of the subject-matter of assessment. In the Full Bench decision of this court in Hindustan Aeronautics Ltd.'s case [1986] 157 ITR 315, 324 Hakeem J., speaking for the Full Bench, observed, at page 13 [1986] ILR 1 Kar 1 : 'It is thus apparent that the Appellate Assistant Commissioner can look into and adjudicate upon findings recorded by the Income-tax Officer not only against the assessee which may expressly be the subject-matter of the appeal but also a matter which has been considered and determ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. There is, therefore, no compelling reason to review that decision." Earlier, at page 12 (p. 323 of 157 ITR), the Full Bench had noticed that the controversy was in relation to the doctrine of merger of such issues "which could have been dealt with by the appellate authority within its jurisdiction but in fact had not been dealt with by the said authority", and also in relation to "such issues which were in fact raised before the appellate or revisional authority but not dealt with by the said authority." The controversy was laid to rest in this State by the Full Bench by extending the doctrine of merger to all issues which necessarily arise in an assessment proceeding as part of its subject-matter. In view of the above decision, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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