Revisional jurisdiction under section 263 required fresh review after retrospective amendment to the merger rule

Section 263 revisional jurisdiction could not be resolved on the basis of the unamended merger view because amended clause (c), inserted retrospectively from 1 June 1988, had not been considered. The Tribunal's earlier approach was therefore treated as incomplete, and the question whether the assessment order had merged in the appellate order required fresh examination under the amended provision. The Tribunal's order was quashed and the matter was remitted for reconsideration after hearing the parties.

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Issues: Whether the Commissioner of Income-tax lacked revisional jurisdiction under section 263(1) of the Income-tax Act, 1961 on the ground that the assessment order had merged in the appellate order, and whether the amended clause (c) of section 263(1) had to be taken into account.

Analysis: The earlier view of merger adopted by the Tribunal was examined in the light of section 263(1)(c), inserted retrospectively with effect from 1 June 1988. Since the Tribunal had not considered the amended provision, the question of jurisdiction could not be finally determined on the basis of the unamended section. The matter therefore required fresh consideration by the Tribunal after hearing the parties.

Conclusion: The Tribunal's order was quashed and the matter was remitted to the Appellate Tribunal for reconsideration of the question afresh in light of the amended provision.

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