Commissioner Of Income Tax vs Mill Stores (P) Ltd.

Whether the entire subject of the assessment is open before the appellate authority and therefore the assessment order has not merged with the order of the CIT(A) even in respect of matters not agitated in appeal, making the assessment order no longer amenable to review under section 263 --- Held: No, in favour of the Revenue. The Madras High Court held that the Explanation to section 263(1), as amended, clarifies that the CIT's revisional power extends to matters not considered in appeal, regardless of whether the appellate order was passed before or after 1st June 1988, and thus the assessment order does not merge with the appellate order on unappealed matters.