1991 (1) TMI 125

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....t after considering the taxability of the sales tax amount refunded to the petitioner during the relevant year. Applicability of the doctrine of merger is the question involved. The petitioner is doing business in the export of coffee ; it also derives interest on deposits and dividend incomes. While computing the total income of the petitioner, the Inspecting Assistant Commissioner had disallowed certain expenses incurred by the petitioner against which the petitioner filed an appeal before the Commisioner of Income-tax (Appeals) who allowed the appeal partly by his order dated, October 1, 1986. Thereafter, the respondent issued a notice under section 263 of the Act, proposing to revise the order of assessment made by the Inspecting Ass....

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....ILR 1 Kar 1. It is not disputed before me that, in the appeal before the Commissioner of Income-tax (Appeals), the said appellate authority could have dealt with the question of the taxability of the sales tax amount refunded to the petitioner. When this position is not disputed, it follows that the said amount has to be treated as part of the subject-matter of assessment. In the Full Bench decision of this court in Hindustan Aeronautics Ltd.'s case [1986] 157 ITR 315, 324 Hakeem J., speaking for the Full Bench, observed, at page 13 [1986] ILR 1 Kar 1 : 'It is thus apparent that the Appellate Assistant Commissioner can look into and adjudicate upon findings recorded by the Income-tax Officer not only against the assessee which may ....