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Issues Involved:
The issue involves the jurisdiction of the Commissioner of Income-tax to revise an assessment order that had been rectified and merged into another order. Summary: Jurisdiction to Revise Assessment Order: The Tribunal referred a question regarding the jurisdiction of the Commissioner of Income-tax to revise an assessment order dated December 12, 1986, under section 263 of the Income-tax Act, 1961. The original assessment allowed a deduction under section 80HHC of the Act, which was later rectified on February 20, 1987. The Commissioner of Income-tax set aside the original order and directed a reassessment. The Tribunal allowed the appeal against the Commissioner's order, stating that the original assessment had merged with the order passed under section 154, and therefore, could not be revised. The contention was supported by legal precedent. Existence of Original Order: The argument presented was that the original order dated December 12, 1986, ceased to exist after rectification on February 20, 1987, and therefore, could not be revised on March 20, 1989. Citing legal precedent, it was emphasized that revising a non-existent order is not permissible under the law. Legal Precedent and Correct Position: Referring to legal precedents, it was highlighted that any order based on non-existent facts is illegal and must be set aside. The Tribunal's decision to reject the revision was deemed appropriate in light of the circumstances. It was emphasized that no authority can revise an order that is no longer in existence. Conclusion: The High Court upheld the Tribunal's decision, stating that the Commissioner of Income-tax lacked jurisdiction to revise an order that was not available for revision at the relevant time. The question was answered in favor of the assessee, and the case was disposed of with no costs awarded. The counsel fees were fixed, and the order was to be transmitted to the Tribunal for further action.
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