Doctrine of merger limited to issues actually decided in appeal; reassessment remained open for matters not examined earlier.
The doctrine of merger applies only to the subject-matter actually decided in appeal; it does not extend to issues not raised or determined there. Since the earlier appeal did not decide the escapement of turnover or the specific exemptions later questioned, the original assessment order did not merge on those aspects. The reassessment under section 12A was therefore not barred, and the assessing authority retained jurisdiction to reopen matters outside the earlier appellate controversy. The Tribunal erred in treating the entire assessment as merged and in holding that reassessment was unavailable.
Issues: Whether the doctrine of merger barred initiation of reassessment proceedings under section 12A after the original assessment had been challenged in appeal on different aspects.
Analysis: The applicability of merger depends on the nature of the superior forum's jurisdiction and the subject-matter actually in challenge. If the precise issue sought to be reopened in reassessment was not the subject-matter of the earlier appeal, the original order does not merge on that aspect. Here, the earlier appeal concerned the assessment order generally, but the escapement of turnover and the particular exemptions later questioned were not the issue decided in appeal. The Tribunal erred in treating the entire assessment order as merged and in holding that the assessing authority lacked jurisdiction to invoke section 12A.
Conclusion: The doctrine of merger did not bar the reassessment proceedings under section 12A, and the Tribunal's contrary view was incorrect.
Final Conclusion: The revision succeeded, the Tribunal's order was annulled, and the matter was sent back for decision on merits.
Ratio Decidendi: The doctrine of merger applies only to the subject-matter actually decided in appeal, and it does not extinguish the original authority's power to reopen matters not covered by that appeal.
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