Doctrine of merger limits revisional power and requires a fair hearing before suo motu tax revision.

The revisional power under section 23(4)(a) was held to be subject to rule 80, which barred suo motu revision of appellate orders. Even though the assessee's appeals were summarily dismissed for non-removal of defects, the assessment orders were treated as merged in the appellate orders, so the original assessments were no longer independently open to revision. The revisional orders were also invalid because the assessee received only a few days' notice of the grounds, leaving insufficient time to meet the case and denying a fair opportunity of hearing. The revisional orders were quashed for want of jurisdiction and breach of natural justice.

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Issues: (i) whether the Commissioner could exercise suo motu revisional jurisdiction under section 23(4)(a) after the assessee's appeals were summarily dismissed for non-removal of defects, having regard to rule 80; (ii) whether the revisional orders were vitiated for want of a reasonable opportunity of hearing.

Issue (i): whether the Commissioner could exercise suo motu revisional jurisdiction under section 23(4)(a) after the assessee's appeals were summarily dismissed for non-removal of defects, having regard to rule 80.

Analysis: The revisional power under section 23(4)(a) was held to be controlled by rule 80, which excluded appellate orders of the Assistant Commissioner from suo motu revision. The Court applied the doctrine of merger and held that dismissal of the appeals, though summary and on a preliminary ground, resulted in the assessment orders merging in the appellate orders. Once the appellate orders came into existence, the original assessments were no longer independently open to revision under rule 80.

Conclusion: The Commissioner had no jurisdiction to revise the assessment orders, and the revisional orders were without authority of law.

Issue (ii): whether the revisional orders were vitiated for want of a reasonable opportunity of hearing.

Analysis: The grounds for initiating revision were furnished only a few days before the hearing, and the assessee, being at a distant place, had insufficient time to instruct counsel or meet the case. The short interval between communication of the grounds and the hearing was held to be unreasonable, and the requirement of a fair hearing was not satisfied.

Conclusion: The revisional orders were also invalid for denial of a reasonable opportunity of hearing.

Final Conclusion: The revisional orders were quashed as being without jurisdiction and the assessee succeeded in both writ applications.

Ratio Decidendi: Where an appeal is dismissed summarily and the appellate order operates as a confirmation of the original assessment, the original order merges in the appellate order and is not open to suo motu revision if the governing rules exclude appellate orders from revisional jurisdiction; revisional action must also comply with the requirement of a fair and reasonable hearing.

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