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TMI Blog1993 (2) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... de out of' the grams purchased in the course of inter-State sales was enhanced to Rs. 1,28,178, against which there was an appeal by the petitioner. The appellate authority set aside the rectification order and remanded the matter on July 22, 1981. On August 18, 1981, the assessing authority made a fresh order on the basis of the remand order and he recomputed the turnover regarding the sales of fried grams made out of grams purchased under inter-State sales at Rs. 19,311 and levied a tax of Rs. 772. The total turnover at Rs. 6,55,336 was however maintained. 2.. Thereafter, the Deputy Commissioner initiated proceedings for revising the assessment order under section 21(2) of the Act. After considering the objections of the petitioner, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The doctrine of "merger" governs the fact situation. In Commissioner of Income-tax v. Hindustan Aeronautics Ltd. [1986] 157 ITR 315, the Full Bench of this Court has observed at pages 324 and 325 as under: "Amid this diversity of opinions, this High Court in Vijayalakshmi Lorry Service's case (see p. 327 infra) without much fuss over the matter has held that the entire order merges when the order was taken in appeal and was modified by the Appellate Assistant Commissioner. Such an order becomes final and the Commissioner was precluded from taking proceedings under section 263 of the Act to revise the order of the Income-tax Officer on another ground. That decision was rendered on September 17, 1975, and is being followed by the authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the doctrine of "merger" and as and when the assessment order is modified in any manner, doctrine of "merger" would be attracted. 6.. In view of the aforesaid decision, we hold that the order of rectification replaced the original order of assessment and consequently the initiation of proceedings by the Deputy Commissioner to revise the said order was within the period of limitation. The contention of Mr. Gandhi is accordingly rejected. 7.. Mr. Gandhi relied on a decision of the Kerala High Court in Sidharth Prabhu v. State of Kerala [1970] 25 STC 503. That was a matter where the appeal filed by the assessee therein was dismissed and thereafter there was a rectification in favour of the assessee whereby the tax liability as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court and, therefore, it is unnecessary for us to consider and follow this decision. 9.. The learned counsel also cited a decision of the Bombay High Court reported in [1990] 77 STC 465 (Commissioner of Sales Tax v. Maharashtra Hardware Stores). The principles stated in this decision can be placed before the Deputy Commissioner since on merits we have not expressed any opinion. 10.. Lastly, Mr. Gandhi contended that the petitioner had no full opportunity to place its objections on the merits of the matter as the petitioner concentrated only on the question of limitation. 11.. In the circumstances, we set aside the order under revision, remit the matter to the Deputy Commissioner for fresh consideration on the merits of the case s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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