- (1.) APPLICABILITY of Explanation (c) to section 263(1). Ratio : Matter is remanded to the Tribunal to consider whether Explanation (c) to section 263(1), inserted with effect from 1 -6 -1988, would apply to an appeal decided before insertion of the same and therefore, part of assessment order against which appeal was not preferred would not merge with the appellate order and can be revised under section 263. Held : Since the contention of the revenue is that clause (c) of the Explanation to section 263(1) is retrospective in nature and, hence is applicable to the case at hand it is nothing but necessary to consider this contention. It is important to note that a division Bench of this court remitted the case of Dhampur Sugar Mills Ltd. to the Tribunal which decision is the sole basis of the order of the Tribunal [see CIT v. Dhampur Sugar Mills Ltd. (1996) 220 ITR 671 (All)] and, therefore, it is nothing but appropriate to direct the Tribunal in this case also to consider the question whether on the facts and in the circumstances of this case, clause (c) of the Explanation to section 263(1) is applicable, and if so what is the effect of the newly inserted clause (c) of the Explanation to section 263(1). Case Law Analysis : CIT v. Dhampur Sugar Mills Ltd. (1996) 220 ITR 671 (All) followed. Application : Also to current assessment years. A. Y. : 1975 -76 and 1976 -77 Income Tax Act 1961 s.263;