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TMI Blog2019 (4) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT OF INDIA] 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. Considering the entirety of facts in the present case, we are therefore of the opinion that this is a fit case for recalling the order for fresh hearing, which we hereby do. The appeal is accordingly recalled for hearing. The order was pronounced in open court. At the request of both the coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Pr.CIT, Shimla vs. M/s Aarham Softronics in Civil Appeal No.1784 of 2019, dated 20.02.2019, reversing its earlier judgement in the case of Classic Binding(supra).It was contended therefore that there was a mistake apparent from record in the order of the Tribunal. Reliance was placed on the following decisions in support of the same: a) ACIT vs Saurashtra Kutch Stock Exchange Ltd., 305 ITR 227(SC) b) CIT vs Smt.Aruna Luthra 252 ITR 76 (P H HC, Full Bench) It was therefore pleaded that the impugned appeal be recalled for hearing afresh. 4. The Ld. DR fairly conceded that the issue was covered in favour of the assessee by the subsequent judgement of the Hon ble Apex Court. 5. We have gone through the entire facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Classic Binding Industries (supra) did not lay down the correct law and that a newly set up undertaking or enterprise in the State of Himachal Pradesh would be entitled to deduction @ 100% of the Act its profits for the first five years and even thereafter in the case of substantial expansion is carried out by it with the previous year in which substantial expansion is undertaken becoming the initial assessment year. That in any case the period of deduction u/s 80IC of the Act would not exceed 10 years. The conclusion of the Hon'ble Apex Court at para 24 of its order is as under: 24. The aforesaid discussion leads us to the following conclusions: (a) Judgment dated 20th August, 2018 in Classic BindingIndustries case omitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od of 10 years, as provided in sub-section (6). For example, if the expansion is carried out immediately, on the completion of first five years, the assessee would be entitled to 100% deduction again for the next fiveyears. On the other hand, if substantial expansion is undertaken, say, in 8th year by an assessee such an assessee would be entitled to 100% deduction for the first five years, deduction @ 25% of the profits and gains for the next two years and @ 100% again from 8th year as this year becomes initial assessment year once again However, this 100% deduction would be for remaining three years, i.e., 8th, 9th and 10th assessment years. 25. In view of the aforesaid, we affirm the judgment of the High Court on this issue and di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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