1972 (2) TMI 27

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.... the Constitution. The petitioner, which is a private limited company, was assessed to income-tax for the assessment year 1966-67. In computing the total income the assessee was granted development rebate in respect of some machinery which had been installed by it in the calendar year 1964. The assessee had also claimed depreciation on certain assets including land. Later on, the Supreme Court ....

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....He issued a notice under section 154 of the Act on April 14, 1971, treating it as a case of rectification of mistake. He finally passed an order under that section on September 10, 1971, withdrawing the development rebate which had been allowed to the assessee in the original assessment order after overruling the assessee's contention that the order was timebarred. The present petition is directed....

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....em of income which had escaped assessment. The original assessment order does not merge into an order passed under section 148. Where reassessment is made under section 148 (corresponding to section 34 of the Indian Income-tax Act, 1922), the Income-tax Officer's jurisdiction is confined to the income which had escaped assessment and does not extend to revising, reopening and reconsidering the who....

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.... restricted only to depreciation. Moreover, an order can be said to have merged in another order only if the latter is passed by a superior authority. It does not merge into a subsequent order passed by the same authority. We, therefore, cannot accept the contention of the learned counsel that the original assessment order had merged into the order passed under section 148, and, therefore, it coul....