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2019 (10) TMI 835 - AT - Income TaxRectification of mistake - allowance of deduction u/s 80IC on substantial expansion undertaken by the assessee - HELD THAT - The issue in the impugned appeal is covered by the decision of in the case of Pr.CIT, Shimla vs. M/s Aarham Softronics 2019 (2) TMI 1285 - SUPREME COURT wherein, it has been held that even a new undertaking which has claimed deduction of its eligible profits @ 100% thereof for the first five years is entitled to claim deduction @ 100% of its profits thereafter on account of substantial expansion undertaken by it. Since the decision of the Apex court in Classic Binding 2018 (8) TMI 1209 - SUPREME COURT stands overruled, this in itself constitutes a mistake apparent from record. A binding decision is always retrospective and the decision overruled was never the law of the land. When a court decides a matter it only interprets law and applies it to the facts of the case. If the interpretation of law is found to be contrary in the light of judicial pronouncement rendered subsequently, it discloses a mistake apparent from record. Hence, a mistake apparent on record has occurred in the order 2018 (12) TMI 193 - ITAT CHANDIGARH of this Tribunal. Hence, this is a fit case for recalling the said common order and for fresh hearing, which we hereby do.
Issues:
1. Recalling of the order dated 27.11.2018 by the Tribunal based on a recent judgment of the Supreme Court regarding deduction u/s 80IC of the Income Tax Act, 1961. Detailed Analysis: The Misc. Application dated 22.03.2019 was filed by the assessee seeking the recall of the Tribunal's order dated 27.11.2018 related to the allowance of deduction u/s 80IC of the Income Tax Act, 1961. The issue revolved around the eligibility of the assessee for a deduction of 100% of the eligible profits due to substantial expansion. The Tribunal had earlier allowed the Revenue's appeal based on a decision of the Hon'ble Supreme Court in the case of 'CIT Vs. M/s Classic Binding Industries'. However, the recent judgment in the case of 'Pr CIT Vs. Aarham Softronics' by the Supreme Court reversed the earlier decision in 'Classic Binding Industries', leading to a plea for the recall of the order dated 27.11.2018. The Ld. Counsel for the assessee argued that the recent Supreme Court judgment in 'Pr CIT Vs. Aarham Softronics' had overruled the decision in 'Classic Binding Industries', making it a mistake apparent from the record in the Tribunal's order dated 27.11.2018. The Ld. DR did not contest this assertion. The Tribunal, after considering the arguments and the recent legal developments, concluded that a mistake apparent on the record had indeed occurred in the earlier order. The Tribunal held that a binding decision is always retrospective, and the decision overruled was never the law of the land, indicating a clear mistake in the previous order. Therefore, the Tribunal found it a fit case for recalling the order and conducting a fresh hearing. Consequently, the Tribunal recalled the order dated 27.11.2018, restored the appeal, and scheduled a fresh hearing for 06.08.2019 based on the recent legal developments and the mistake apparent from the record. The Miscellaneous Application filed by the assessee was allowed, and the order was pronounced in the Open Court on 06.08.2019.
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