2023 (8) TMI 98 - SCH - Income Tax

Income accrued / taxable in India - Royalty u/s 9(1)(vi) r.w.a.12 of the Indo US DTAA - licensing of software products of Microsoft in the Territory of India by the Respondent - As issues raised have been answered by a judgment by Three Judge Bench of this Court in Engineering Analysis Centre of Excellence Private Limited 2021 (3) TMI 138 - SUPREME COURT - Learned ASG appearing for the petitioner submitted that a review petition as against the aforesaid judgment is pending before this Court and that the matter is to be heard in open Court. HELD THAT - In our view, as on today, Engineering Analysis Centre of Excellence Private Limited (supra) is holding the field. In the event, the aforesaid decision is overruled, that cannot have a bearing on the present case, as it will have an impact only on the judgment passed in Engineering Analysis Centre of Excellence Private Limited (supra) and the cases to be decided thereafter. In other words, if once a judgment is passed by a Court following another judgment and subsequently the latter judgment is overruled on a question of law, it cannot have an effect of reopening or reviving the former judgment passed following the over ruled judgment nor can the same be reviewed. In view of the above, we hold that as on today the judgment of a Three Judge Bench of this Court in Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax and Another (supra) is holding the field and therefore the said judgment would have to be followed in the instant case. SLP dismissed.

Summary

Issues involved:
The issues raised in a special leave petition have been addressed by a previous judgment of a Three Judge Bench. The petitioner seeks to keep the matter pending due to a review petition against the previous judgment. The respondent highlights the dismissal of a similar case and the reservation of liberty in another case for review. The main issue is whether the previous judgment should be followed or not.

Judgment Details:
The Court notes that the issues raised in the special leave petition have already been addressed in a previous judgment by a Three Judge Bench. The petitioner requests to keep the matter pending due to a review petition against the earlier judgment. On the contrary, the respondent points out the dismissal of a similar case and the reservation of liberty for review in another case. The Court opines that the previous judgment is currently applicable and must be followed in the present case. The Court emphasizes that if a subsequent judgment overrules the previous one, it will only impact cases decided after the overruled judgment. The Explanation to Order XLVII Rule 1 of the Code of Civil Procedure is cited to support this position, stating that the reversal of a legal question in a superior Court does not warrant a review of a judgment. The Court highlights the importance of finality in litigation and the principles of public policy and justice in upholding the previous judgment. Consequently, the special leave petition is dismissed, and any pending applications are disposed of accordingly.