Doctrine of merger bars revision of an assessment order once the appellate order becomes operative on the disputed issue.

The doctrine of merger prevents revisional jurisdiction from being exercised against an order that has ceased to exist on the disputed point. Where the assessment order on interest was carried in appeal and the Appellate Assistant Commissioner set aside the rectification, the appellate order became the operative order on that issue. The original assessment order on that point was extinguished in law and could not be revised under section 33B of the Indian Income-tax Act, 1922. Revisional power was therefore unavailable once merger had occurred.

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Issues: Whether the Commissioner could invoke revisional jurisdiction under section 33B of the Indian Income-tax Act, 1922 when the assessment order on the point of interest had already merged in the appellate order passed by the Appellate Assistant Commissioner.

Analysis: The assessment order originally passed by the Income-tax Officer on the charge of interest did not remain operative after the rectification order was carried in appeal and the Appellate Assistant Commissioner set aside that rectification. On the doctrine of merger, the operative order on the disputed point became the appellate order, and the original assessment order ceased to exist in law on that point. In such a situation, the Commissioner could not revise the earlier order under section 33B, because the order sought to be revised had merged into the appellate order and was no longer amenable to revision.

Conclusion: The Commissioner had no jurisdiction to revise the assessment order on the disputed issue after merger into the appellate order. The question was answered in favour of the assessee.

Ratio Decidendi: Once an order on a particular issue has merged in the appellate order, the original order on that issue is extinguished for purposes of revision, and revisional jurisdiction cannot be exercised against a non-existent order.

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