Revised assessment after rectification governs appeal maintainability and pre-deposit sufficiency under the operative order
Where rectification modifies the original assessment, the revised order merges with the original and becomes the operative assessment for appellate purposes. An appeal is therefore maintainable against the modified assessment, and the remedy cannot be denied merely because the appeal is re-presented after rectification. The pre-deposit requirement may also be assessed with reference to the revised assessment order, so a deposit made after that revision can be sufficient for admission of the appeal. The refusal to entertain the appeal was set aside, and the matter was allowed to proceed on merits on the basis of the revised assessment.
Issues: (i) Whether an appeal was maintainable against the revised or rectified assessment order passed after rectification of the original assessment. (ii) Whether the pre-deposit made after the revised assessment order could be treated as sufficient for entertaining the appeal.
Issue (i): Whether an appeal was maintainable against the revised or rectified assessment order passed after rectification of the original assessment.
Analysis: The rectification order did not stand in isolation but merged with and modified the original assessment order. Once the assessment was altered pursuant to rectification, the operative order became the modified assessment, and the appellate remedy could not be denied merely because the appeal was re-presented with reference to the rectified order. The bar on appeal applies when rectification is refused and the original order remains intact, not when rectification results in a positive modification of the assessment.
Conclusion: The appeal was maintainable, and the objection to its entertainment was unsustainable.
Issue (ii): Whether the pre-deposit made after the revised assessment order could be treated as sufficient for entertaining the appeal.
Analysis: The original presentation of the appeal was followed shortly thereafter by a revised assessment order after acceptance of declaration forms. The assessee then deposited 25% of the disputed tax as computed under the revised order. In these circumstances, the deposit was to be reckoned with reference to the revised assessment, and the appeal could not be rejected on the ground that the amount was not paid on the date of the first presentation.
Conclusion: The pre-deposit was rightly treated as sufficient for admission of the appeal.
Final Conclusion: The impugned refusal to entertain the appeal was set aside, and the assessee was permitted to have the appeal heard on merits with the deposit reckoned on the basis of the revised assessment.
Ratio Decidendi: Where a rectification results in modification of the original assessment, the revised order merges with the original order and the appellate remedy lies against the modified assessment; pre-deposit for admission of the appeal may be reckoned with reference to the operative revised order.
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