Doctrine of merger is limited to appealed issues only; untargeted exempt turnover cannot be revised after limitation expires.

The doctrine of merger applies only to the extent of the subject-matter actually taken in appeal, not to the entire assessment as a matter of course. Where the appellate proceedings were confined to turnover on which exemption had been refused, the appellate authority's order did not reopen turnover on which exemption had already been allowed by the assessing authority. The Board of Revenue therefore could not, in suo motu revision under section 34, disturb the exempted turnover after the limitation period had expired, because section 34(2)(c) barred revision beyond time in respect of matters not covered by the appeal. The Board had no jurisdiction to cancel the granted exemption on the untouched turnover.

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Issues: Whether the Board of Revenue, in suo motu revision under section 34, could reopen the assessment portion granting exemption on turnover that was not the subject of the appeal before the Appellate Assistant Commissioner, after the period of limitation had expired.

Analysis: The appellate proceedings before the Appellate Assistant Commissioner were confined only to the turnover of Rs. 70,903.69 for which exemption had been refused, and did not extend to the turnover of Rs. 5,58,479 on which exemption had already been allowed by the assessing authority. The doctrine of merger was held not to apply across the board merely because an appeal had been decided; it operates only to the extent of the subject-matter actually carried in appeal. Since the disputed turnover before the appellate authority did not cover the exempted turnover, the Board of Revenue could not, under the guise of revising the appellate order, disturb the assessment beyond the period prescribed by section 34(2)(c). The cases relied upon by the revenue were distinguished on the ground that, in those matters, the appellate order covered the entire assessment.

Conclusion: The Board of Revenue had no jurisdiction to cancel the exemption already granted by the assessing authority on the turnover of Rs. 5,58,479 after the limitation period had expired.

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