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Issues:
1. Whether the order of the ITAT, E-Bench, Mumbai, dated 13-10-1998 suffers from a mistake apparent from the record due to a subsequent decision by the Hon'ble Bombay High Court regarding ship breaking activity being considered as a manufacturing activity. Analysis: The assessee contended that the ITAT's order was not in conformity with the Hon'ble Bombay High Court's decision on ship breaking activity. The assessee argued that ship breaking constitutes a manufacturing process, making them eligible for deductions under sections 80HH and 80-I of the Act. However, the ITAT had previously ruled in another case that ship breaking does not amount to the manufacture of any article or thing. The Hon'ble Bombay High Court later ruled that ship breaking is indeed a manufacturing activity. The debate centered on whether the ITAT's decision should be rectified based on the subsequent High Court judgment. The ITAT examined the arguments presented by both parties. The Hon'ble High Court's rulings in various cases were considered, emphasizing that an order cannot be deemed to have a mistake apparent from the record solely based on a later judgment. It was highlighted that when an authority decides an issue, the existing law at that time is crucial. The ITAT referred to cases where the law was clarified by the Supreme Court or through retrospective amendments, distinguishing them from the situation at hand. Since there was no direct decision by the jurisdictional High Court on whether a later judgment could establish a mistake in the ITAT's earlier order, the ITAT concluded that the order in question did not suffer from any apparent mistake and rejected the application for rectification. In conclusion, the ITAT held that the order dated 13-10-1998 did not contain a mistake apparent from the record, as the subsequent judgment of the Hon'ble Bombay High Court did not automatically render the ITAT's decision incorrect. The ITAT relied on legal principles and precedents to support its decision, emphasizing the importance of the law existing at the time of the original decision-making process.
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