Protective assessment and revision limits: remand scope governs fresh consideration under revisional powers.

Protective assessment and regular assessment operate in different fields, and the doctrine of merger does not extinguish issues arising from a protective assessment merely because regular assessment proceedings exist. The revisional authority must act within the scope of any remand and cannot treat the protective assessment or related appellate orders as non est unless the remand so permits. On that basis, the Commissioner's decision to correct the order that had dropped suo motu revision on limitation grounds and to direct fresh consideration under the revisional power was upheld.

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Issues: Whether the Commissioner of Commercial Taxes was justified in setting aside the revisional order that had dropped the suo motu proceedings on limitation grounds and in remanding the matter for de novo proceedings under the revisional provision.

Analysis: The earlier remand required reconsideration of the matter in accordance with law with reference to the protective assessment and its relationship with the regular assessment. The revisional authority could not treat the protective assessment and the appellate orders as non est, nor could it import limitation based on the regular assessment in a manner contrary to the scope of the remand. Protective assessment and regular assessment operate in different fields, and the doctrine of merger did not apply so as to extinguish the protective assessment or the issues arising from it. The Commissioner therefore acted within jurisdiction in correcting the order that had wrongly declined to proceed and in directing fresh consideration under the revisional power.

Conclusion: The challenge to the Commissioner's order failed. The order setting aside the revisional dropping order and remanding the matter for de novo revision was upheld, against the assessee and in favour of the Revenue.

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