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TMI Blog2011 (6) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appeal are directed against the order of the ld. CIT on merits of the case wherein grievance projected by the assessee is that the ld. CIT failed to appreciate that the Assessing Officer, while passing order u/s 143(3) of the Income-tax Act, 1961 [in short, the Act] considered the factual aspects of all the issues, decisions of the Hon'ble Supreme Court and various High Courts and hence the order of the Assessing Officer is neither erroneous and prejudicial to the interest of the revenue warranting action u/s 263 of the Act. 4. First we take up the issue whether the order of the ld. CIT is barred limitation. 5. We have heard the rival submissions and perused the orders of the lower authorities and the material available on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as justified in passing revision order u/s 263 on 30.3.2009. According to ld. D.R., the original order dated 29.3.2004 passed by the Assessing Officer has merged in the reassessment order dated 29.12.2006 passed by the Assessing Officer. According to ld. D.R., once the reopening of an assessment is made, all the issues are open before the Assessing Officer and therefore, reassessment order is an assessment in respect of entire issues. The ld. D.R. further contended that in the reassessment order the Assessing Officer allowed deduction in respect of provisions for doubtful debts at ₹ 11,24,91,794/- in place of deduction allowed at ₹ 11,11,36,989/- in the original assessment order dated 29.3.2004, therefore, the order of the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich had been decided in the original assessment proceedings. 10. Thus it is settled position of law that jurisdiction of the Assessing Officer u/s 147 of the Act is limited to the escaped income and not other issues which are beyond his jurisdiction. Further, it is also settled position of law that the order of the lower authorities merges with the order of the higher authority, and that too, only to the extent of issues which were considered by the higher authorities. The order of the statutory authority does not merge with subsequent order passed by the very same authority because the statutory authority is not empowered to revise its own order or order of his predecessor. In that case, order which remains in force is the original o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble because we find that the said issue was not a subject mater of section 147 proceedings and the Assessing Officer never took a fresh decision in respect of the same in reassessment order. In the reassessment order, only because of increase in total income, the Assessing Officer revised the figure in accordance with his decision taken in the original order dated 29.3.2004. In the original order dated 29.3.2004, the Assessing Officer held that the assessee was eligible for deduction u/s 36(1)(viia) of the Act subject to maximum of 5% of total income. As in the reassessment order after including escaped income of ₹ 2,70,96,093/- in the total income of the assessee, the income of the assessee consequently increased and therefore, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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