Revision of consequential assessment barred by four-year limitation where appellate relief order was not revised.

Revision under section 35 of the Karnataka Agricultural Income-tax Act, 1957 could not be exercised against a consequential assessment order passed to give effect to an appellate direction where the appellate order itself was not revised. The order prejudicial to the Revenue was the appellate order granting relief, so the four-year limitation under section 35(2) had to be computed from that date. As the revisional order was passed after expiry of four years, the statutory bar applied and the revisional authority lacked jurisdiction. The revision was therefore barred by limitation and invalid.

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Issues: Whether the revisional authority could revise a consequential assessment order passed to give effect to an appellate order, when the appellate order itself was not revised, and whether the exercise of revisional power beyond four years from the appellate order was barred under section 35 of the Karnataka Agricultural Income-tax Act, 1957.

Analysis: Section 35(1) authorises revision of an order passed by a subordinate authority if it is erroneous and prejudicial to the interests of the Revenue, while section 35(2) bars exercise of that power after four years from the date of the order sought to be revised. The order passed by the assessing authority in compliance with the appellate direction was only consequential. The order that actually affected the Revenue was the appellate order granting relief, and limitation had therefore to be computed from the date of that appellate order. Since the revisional order was made after expiry of four years, the statutory bar operated and the revisional authority lacked jurisdiction.

Conclusion: The revision was barred by limitation and the revisional order was without jurisdiction; the issue is decided in favour of the assessee.

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