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Doctrine of merger

In a assessment which was completed by AO u/s 143(3), the assessee claimed that notice u/s143(2) was not served upon the assessee in time, hence order of AO is bad in law and it shoudl be quashed. Department failed to disapprove claim of the assessee hence CIT(A) decided in favour of the assessee and assessment order of the AO was quashed. PrCIT did not prefer appeal before ITAT and AO initiated action u/s 148. On reciept of notice u/s 148, the assessee filed writ before Gujarat HC. When AO discussed the matter with standing counsel, he said that the assessee has taken plea befoe HC that order of AO is merged with the order of CIT(A) in view of Doctrine of Merger, hence re-opening cannot be done on the same issue ? The issue was raised in ITKP for discussion.

In view of the decison of Hon'ble SC in he case of 345 ITR 356 (SC)Raja Mechanical Co. (P.) Ltd If for any reason an appeal is dismissed on ground of limitation and not on merits, that order would not merge with orders passed by first appellate authority.
The above case was conveyed to the standing counsel. The case was defended well by standing counsel and Hon'ble HC decided in favour of  Revenue..

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