Doctrine of merger in estate duty assessment applies only to issues actually decided in appeal; rectification remains available otherwise.

The doctrine of merger is not universal and applies only to the portion of an assessment actually taken up and decided in appeal. Where the appeal under the Estate Duty Act was confined to valuation of specified properties, the appellate authority's order did not absorb the entire original assessment. The original order therefore continued to subsist for matters outside the appellate decision, and rectification under section 61 remained available in respect of those matters. The rectification notice did not seek to disturb the issues already decided on appeal, so the challenge based on complete merger failed.

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Issues: Whether the original estate duty assessment order merged wholly with the appellate order so as to bar the Assistant Controller from exercising rectification power under section 61 of the Estate Duty Act, 1953.

Analysis: The doctrine of merger is not of rigid or universal application and depends on the subject-matter of the appellate order and the scope of the appellate provision. The appeal under section 62 of the Estate Duty Act, 1953 was confined only to the valuation of specified items of property. The appellate authority dealt only with those items and did not examine or alter the entire assessment order. Accordingly, merger operated only to the extent of the matters actually decided in appeal, and not beyond them. The rectification notice did not seek to disturb the appellate determination.

Conclusion: The original assessment order did not merge wholly with the appellate order. The Assistant Controller retained jurisdiction to act under section 61 of the Estate Duty Act, 1953 in respect of matters not covered by the appellate decision, and the challenge on the ground of merger failed.

Final Conclusion: The writ application was rejected because the rectification action was not barred by a complete merger of the assessment order with the appellate order.

Ratio Decidendi: The doctrine of merger applies only to the part of the inferior authority's order that is actually the subject-matter of appeal and decided by the appellate authority; the remaining portion of the original order continues to subsist and may be dealt with under the statutory rectification power.

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