The Assessing Officer had disallowed certain deductions claimed by the assessee under section 80-IA and section 80-IB of the Income-tax Act, 1961. The CIT(A) allowed these deductions, and this order was subsequently upheld by the Tribunal when it dismissed the Revenue’s appeal. Despite this, the CIT initiated revision proceedings under section 263 to disallow the same deductions.

The High Court held that the order of the CIT(A) had merged with the order of the Tribunal, which had attained finality. Consequently, the CIT could not exercise his revisional powers under section 263, as the doctrine of merger barred him from revisiting an issue that had already been considered and decided by the Tribunal. (AY. 2005-06)