Revisional power vs escaped turnover: revision could correct an unlawful exemption where the turnover was already on record.

Revisional power under section 15(1)(i) was held distinct from the power to assess escaped turnover under rule 33. The Supreme Court stated that revision permits the Deputy Commissioner to examine the legality or propriety of a subordinate assessment and correct illegality, impropriety, or irregularity on the record, while rule 33 applies only where turnover has escaped assessment. Because the disputed turnover was already before the assessing authority and the issue was the lawfulness of the exemption granted, the matter fell within revision rather than escaped assessment. The Deputy Commissioner was therefore competent to act under section 15(1)(i), and the limitation under rule 33 did not apply.

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Issues: Whether the Deputy Commissioner could, in exercise of revisional power under section 15(1)(i), revise an assessment on the footing that turnover had been wrongly exempted, or whether such action could lie only under rule 33 dealing with escaped turnover within the prescribed period.

Analysis: Section 15(1)(i) conferred revisional jurisdiction to examine the legality or propriety of an order passed by a subordinate authority and to correct illegality, impropriety, or irregularity appearing on the record. Rule 33, framed under the rule-making power relating to escaped assessments, operated in a different field and enabled the assessing authority to bring to tax turnover that had escaped assessment. The two powers were distinct in nature and source. Where the turnover was already before the assessing authority and the question was whether an exemption granted was lawful, the matter fell within revision; it was not a case of escaped assessment within rule 33.

Conclusion: The Deputy Commissioner was competent to proceed under section 15(1)(i), and the limitation applicable to rule 33 did not govern the case.

Final Conclusion: The assessment revision was upheld and the High Court's contrary view was set aside.

Ratio Decidendi: Revisional power to correct illegality or impropriety in an assessment is distinct from the statutory power to assess escaped turnover, and the latter cannot be imported to restrict revision where the disputed turnover was already part of the assessment record.

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