Article
Doctrine of Merger and its application to orders passed under Income Tax Act, 1961
By Abhinov Vaidyanathan
Doctrine of Merger is a common law doctrine which is founded on the principles of propriety in the hierarchy of justice delivery system. The underlying logic of Doctrine of Merger is that there cannot be more than one decree or an operative order governing the same subject-matter at a given point of time. The article in this issue of Direct Tax Amicus elaborately discusses the interplay between the Doctrine of Merger and certain provisions of the Income Tax Act, 1961, namely Sections 147 (assessment, re-assessment), 263 (revision) and 154 (rectification of mistake). Examining various case law and circumstances, the author states that it must be kept in mind that this doctrine is not applicable in all scenarios and to all the orders passed under the Income Tax Act...
Notifications and Circulars
- ‘E-assessment Scheme’ changed to ‘Faceless assessment Scheme’ – Highlights
- Income tax return for AY 2019-20 – Second extension of due dates
Ratio decidendi
- Refund cannot be withheld under Section 241A, pursuant to notice under Section 143(2), without recording any justifiable reason – Delhi High Court
- Re-assessment not sustainable when ground a subject matter of discussion at time of original assessment order or proceedings under Section 263 – Madras High Court
- Exemption under Section 54F available even when sale proceeds of old asset not invested in Capital Gain Account scheme – Madras High Court
- Invocation of Rule 8D proper when assessee failed to make “indirect expenses” under Section 14A – Madras High Court
- Notice to assessee under Section 148 after his death is invalid – Transfer of proceedings on legal heir not correct – Legal heir also not bound to intimate death of assessee – Delhi High Court
- Provisional attachment not to be invoked when officer not certain of taxability – Calcutta High Court
