9911796707
|
Home
Issues Involved:
1. Effective date of the notification dated March 29, 1979. 2. Jurisdiction of the Commissioner of Income-tax under section 263 of the Income-tax Act in light of the doctrine of merger. Issue-wise Detailed Analysis: 1. Effective Date of the Notification Dated March 29, 1979: The primary issue was whether the notification dated March 29, 1979, granting exemption from purchase tax, became effective from the date it was issued or from the date it was published and made available to the public. The assessee argued that the notification, although dated March 29, 1979, was published and made available to the public only on April 3, 1979, and thus should be considered effective from April 3, 1979. This would place the notification within the accounting year 1979-80, relevant to the assessment year 1980-81. The Revenue contended that the notification took effect from the date it was issued, i.e., March 29, 1979, making it relevant for the assessment year 1979-80. The court relied on the certificate issued by the Assistant Superintendent, Government Press, Trivandrum, which confirmed that the notification was published and made available to the public only on April 3, 1979. The court cited several precedents, including the Full Bench decision in R. K. V. Motors and Timbers (P) Ltd. v. Regional Transport Officer and the Supreme Court decision in Harla v. State of Rajasthan, which established that subordinate legislation takes effect only when it is published or made known to the public. The court held that the notification became effective only on April 3, 1979, falling within the accounting year 1979-80, relevant to the assessment year 1980-81. Therefore, the Appellate Tribunal was justified in holding that the notification was effective from April 3, 1979. 2. Jurisdiction of the Commissioner of Income-tax Under Section 263 of the Income-tax Act in Light of the Doctrine of Merger: The second issue was whether the Commissioner of Income-tax had jurisdiction under section 263 of the Income-tax Act to revise the assessment order after it had been appealed before the Commissioner of Income-tax (Appeals). The doctrine of merger was central to this issue. The assessee argued that the entire assessment order merged with the appellate order, and thus the Commissioner of Income-tax had no jurisdiction to revise any part of it under section 263. The Revenue contended that the doctrine of merger applied only to matters that were the subject of the appeal and not to issues that were not appealed or considered by the appellate authority. The court noted conflicting views on the doctrine of merger. However, it referred to the Bench decision in CIT v. Travancore Tea Estates Co. Ltd., which stated that the doctrine of merger applies only to matters considered and decided by the appellate authority and not to issues outside its decision. The court held that the Commissioner of Income-tax retained jurisdiction under section 263 to revise matters not considered or decided in the appeal. Therefore, the Tribunal was in error in holding that the Commissioner had no jurisdiction to pass the order under section 263. Conclusion: The court answered the first question in the affirmative, against the Revenue and in favor of the assessee, holding that the notification dated March 29, 1979, was effective only from April 3, 1979. The second question was answered in the negative, against the assessee and in favor of the Revenue, holding that the Commissioner of Income-tax had jurisdiction under section 263 to revise the assessment order on matters not considered in the appeal. The reference was disposed of accordingly.
|
