M/s C.R.G. Industries, Baddi V. DCIT, Circle, Parwanoo

MA 56/CHANDI/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9179 (ITAT-CHANDIGARH)
• Duration Of Justice: 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 13-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH SR DR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER M.A. NO. 56/CHD/2019 ( IN ./ ITA NO. 309/CHD/2018) / ASSESSMENT YEAR : 2014-15 M/S CRG INDUSTRIES, 75, HPSIDC, INDUSTRIAL AREA, BADDI, DISTT. SOLAN THE DCIT,CIRCLE, PARWANOO. ./PAN NO: AAEFC7147E / APPELLANT /RESPONDENT ! ' /ASSESSEE BY : SH. T.N. SINGLA, CA # ! ' / REVENUE BY : SH. MANJIT SINGH, SR.DR $ % ! & /DATE OF HEARING : 26.03. 2019 '()* ! & / DATE OF PRONOUNCEMENT : 26. 03.2019 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT MISC. APPLICATION DATED 13.3.2019 ARISI NG OUT OF ITA NO. 309/CHD/2018 HAS BEEN MOVED BY THE ASSESSEE PLE ADING THEREIN FOR RECALLING THE ORDER DATED 05.11.2018 OF THE TRIBUNA L. 2. IT WAS POINTED OUT THAT THE IMPUGNED APPEAL RELA TING TO ALLOWANCE OF DEDUCTION U/S 80IC OF THE INCOME TAX ACT, 1961(HERE INAFTER REFERRED TO AS 'ACT') @ 100% OF THE ELIGIBLE PROFITS, ON SUBSTANTI AL EXPANSION UNDERTAKEN BY THE ASSESSEE. THAT EARLIER THE ITAT HAD ALLOWED THE APPEAL OF THE REVENUE FOLLOWING THE DECISION DATED 20.8.2018 OF T HE HON'BLE SUPREME COURT DECIDED IN FAVOUR OF THE REVENUE IN THE GROUP OF CASES WITH THE LEAD M.A. NO.56-C-2019 IN ITA 309-C-18 M/S CRG INDUSTRIES, SOLAN 2 CASE AS CIT VS. M/S CLASSIC BINDING INDUSTRIES, I N CIVIL APPEAL NO(2) 7208 OF 2018. IT IS FURTHER SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE ISSUE NOW STANDS COVERED WITH THE RECENT J UDGMENT OF HON'BLE SUPREME COURT PASSED IN CASE OF PR CIT VS. AARHAM SOFTRONICS, WHEREIN, THE ORDER OF CIT(A) VS. CLASSIC BINDING INDUSTRIES IN CIVIL APPEAL NO(S) 7208 OF 2018 DATED 20.08.2018 WAS REVERSED. IT WAS , THEREFORE, PLEADED THAT THE ORDER DATED 5.11.2018 BE RECALLED. 3. THE LD. DR DID NOT CONTROVERT THE SAME. 4. WE HAVE GONE THROUGH THE ENTIRE FACTS OF THE CAS E. BOTH THE COUNSELS OF THE PARTIES HAVE POINTED OUT THAT THE ISSUE IN THE IMPUGNED APPEALS IS COVERED BY THE DECISION OF THE HON'BLE APEX COURT I N THE CASE OF PR.CIT, SHIMLA VS. M/S AARHAM SOFTRONICS IN CIVIL APPEAL N O.1784 OF 2019, DATED 20.02.2019, 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(SUPRA) STANDS OVE RRULED, THIS IN ITSELF CONSTITUTES A MISTAKE APPARENT FROM RECORD. A BINDI NG DECISION IS ALWAYS RETROSPECTIVE AND THE DECISION OVERRULED WAS NEVER THE LAW OF THE LAND. WHEN A COURT DECIDES A MATTER IT ONLY INTERPRETS LA W 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 SUBSEQUENT LY, IT DISCLOSES A MISTAKE APPARENT FROM RECORD. HENCE, A MISTAKE APPA RENT ON RECORD HAS OCCURRED IN THE ORDER DATED 5.11.2018 OF THIS TRIBU NAL. HENCE, THIS IS A FIT M.A. NO.56-C-2019 IN ITA 309-C-18 M/S CRG INDUSTRIES, SOLAN 3 CASE FOR RECALLING THE SAID ORDER AND FOR FRESH HE ARING, WHICH WE HEREBY DO. 5. THE ORDER DATED 5.11.2018 IS ACCORDINGLY RECALLE D, THE APPEAL IS RESTORED AND POSTED FOR HEARING AFRESH TODAY I.E. 2 6.3.2019. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26.3.2019. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 26.03.2019 .. (, ! -. /. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ 0 / CIT 4. $ 0 ( )/ THE CIT(A) 5. .12 3 , & 3 , 45627 / DR, ITAT, CHANDIGARH 6. 26 8% / GUARD FILE (, $ / BY ORDER, 9 # / ASSISTANT REGISTRAR