Merger of assessment order in final appellate order bars reopening by the assessing authority after finality has been reached.

Once an assessment order merges in a final appellate order and the revenue does not carry the matter further, the original assessment loses independent existence. In that situation, the assessing authority becomes functus officio and cannot invoke miscellaneous or rectificatory powers to reopen or modify the concluded assessment. The note applies the merger principle to hold that a reopening made after the appellate orders had attained finality was without jurisdiction and could not be sustained.

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Issues: Whether the assessing authority could reopen and modify a concluded assessment after the original assessment order had merged in the appellate order and attained finality.

Analysis: The original assessment was followed by a first appellate order and a second appellate order in the assessee's favour, and no further challenge was carried by the revenue. Once the appellate order attained finality, the original assessment ceased to have independent existence. In such circumstances, the assessing authority became functus officio and could not invoke any miscellaneous or rectificatory power to reopen the concluded assessment. The earlier decisions relied upon support the rule that, after merger of the assessment order in the appellate order, the assessing authority has no jurisdiction to re-open the matter.

Conclusion: The reopening order was without jurisdiction and could not be sustained; the issue is decided in favour of the assessee.

Ratio Decidendi: Where an assessment order has merged in a final appellate order, the assessing authority becomes functus officio and cannot reopen or revise the concluded assessment on any ground.

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