M/s Raghav Life Style Product (Unit II), Baddi V. DCIT, Circle, Parwanoo

MA 58/CHANDI/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8463 (ITAT-CHANDIGARH)
• Duration Of Justice: 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 15-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: YOGINDER MITTAL

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. 58/CHD/2019 ( ARISING OUT OF ITA NO. 678/CHD/2018-DECIDED VIDE O RDER 18.09.2018) / ASSESSMENT YEAR : 2014-15 M/S RAGHAV LIFE STYLE PRODUCT (UNIT-II) V&PO THANA, MOREPEN ROAD, BADDI, SOLAN (H.P(. THE DCIT,CIRCLE, PARWANOO. ./PAN NO: AAPFT5812A APPELLANT /RESPONDENT /ASSESSEE BY : SH. YOGINDER MITTAL, SR.DR ! / REVENUE BY : NONE ' # $ /DATE OF HEARING : 28.03. 2019 %&'( $ / DATE OF PRONOUNCEMENT : 28. 03.2019 '*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT MISC. APPLICATION DATED 15.3.2019 ARISI NG OUT OF ITA NO. 678/CHD/2018 HAS BEEN MOVED BY THE ASSESSEE PLE ADING THEREIN FOR RECALLING THE ORDER DATED 18.09.2018 OF THE TRIBUNA L. 2. NO ONE HAS APPEARED ON BEHALF OF THE ASSESSEE. H OWEVER, VIDE AFORESAID MISC. APPLICATION, THE ASSESSEE HAS PRAY ED FOR RECALLING THE ORDER OF THE TRIBUNAL DATED 18.9.2018, WHEREIN, IT HAS BEEN SUBMITTED THAT THE APPEAL OF THE REVENUE WAS ALLOWED RELYING UPON THE JUDGEMENT OF THE APEX COURT IN THE CASE OF CLASSIC BINDING INDUSTRI ES IN CIVIL APPEAL NO(S) 7208 OF 2018 DATED 20.08.2018 DESPITE THE FAC T THAT THERE WERE NUMBER OF REVIEW PETITIONS FILED AGAINST THE JUDGEM ENT OF THE APEX COURT M.A. NO.58-C-2019 IN ITA 678-C-18 M/S RAGHAV LIFE STYLE PRODUCT, BADDI 2 IN THE CASE OF CLASSIC BINDING INDUSTRIES AS THE RATIO LAID DOWN IN THAT JUDGEMENT WAS NOT GOOD AT LAW AND PRESENTLY DULY RE VERSED BY THE APEX COURT THE CASE OF PCIT, SHIMLA VS. AARAM SOFTRONIC S & ORS. IN CIVIL APPEAL NO.1784 OF 2019, DATED 20.02.2019. 3. IT WAS POINTED OUT THAT THE ISSUE INVOLVED IN TH E MAIN APPEAL WAS RELATING TO THE ALLOWANCE OF DEDUCTION U/S 80IC OF THE INCOME TAX ACT, 1961(HEREINAFTER REFERRED TO AS 'ACT') @ 100% OF TH E ELIGIBLE PROFITS, ON SUBSTANTIAL EXPANSION UNDERTAKEN BY THE ASSESSEE EV EN THOUGH THE ASSESSEE HAD ALREADY AVAILED THE DEDUCTION @ 100% FOR 5 YEAR S U/S 80IC OF THE ACT ON ESTABLISHMENT OF THE UNIT. THAT EARLIER THE ITA T HAD ALLOWED THE APPEAL OF THE REVENUE FOLLOWING THE DECISION DATED 20.8.20 18 OF THE HON'BLE SUPREME COURT DECIDED IN FAVOUR OF THE REVENUE IN T HE GROUP OF CASES WITH THE LEAD CASE AS CIT VS. M/S CLASSIC BINDING INDUS TRIES, IN CIVIL APPEAL NO(2) 7208 OF 2018. IT IS FURTHER SUBMITTED BY T HE LD. COUNSEL FOR THE ASSESSEE THAT THE ISSUE NOW STANDS COVERED WITH TH E RECENT JUDGMENT OF HON'BLE SUPREME COURT PASSED IN CASE OF PR CIT VS. AARHAM SOFTRONICS (SUPRA), WHEREBY, THE ORDER IN THE CASE OF CIT(A ) VS. CLASSIC BINDING INDUSTRIES IN CIVIL APPEAL NO(S) 7208 OF 2018 DA TED 20.08.2018 HAS BEEN REVERSED. IT WAS, THEREFORE, PLEADED THAT THE ORDER DATED 5.11.2018 BE RECALLED. 4. THE LD. DR DID NOT CONTROVERT THE SAME. 5. WE HAVE GONE THROUGH THE ENTIRE FACTS OF THE CAS E. IT IS AN ADMITTED FACT THAT THE ISSUE IN THE MAIN APPEAL IS COVERED BY THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF PR.CIT, SHIMLA VS. M/S AARHAM SOFTRONICS IN CIVIL APPEAL NO.1784 OF 2019, DATED 20.02.2019, WHEREIN, IT HAS BEEN HELD THAT EVEN A NEW UNDERTAKING WHICH HAS CLAIMED DEDUCTION M.A. NO.58-C-2019 IN ITA 678-C-18 M/S RAGHAV LIFE STYLE PRODUCT, BADDI 3 OF ITS ELIGIBLE PROFITS @ 100% THEREOF FOR THE FIRS T 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 OVERRULED, THIS IN I TSELF 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 C ONTRARY IN THE LIGHT OF JUDICIAL PRONOUNCEMENT RENDERED SUBSEQUENTLY, IT DI SCLOSES A MISTAKE APPARENT FROM RECORD. HENCE, A MISTAKE APPARENT ON RECORD HAS OCCURRED IN THE ORDER DATED 18.09.2018 OF THIS TRIBUNAL. HENCE , THIS IS A FIT CASE FOR RECALLING THE SAID ORDER AND FOR FRESH HEARING, WH ICH WE HEREBY DO. 6. THE ORDER DATED 18.09.2018 IS ACCORDINGLY RECALL ED, THE APPEAL IS RESTORED AND POSTED FOR HEARING AFRESH FOR TODAY I. E. 28.3.2019. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28.3.2019. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 28.03.2019 ** &+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' / / CIT 4. ' / ( )/ THE CIT(A) 5. -01 2 , $ 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7# / GUARD FILE M.A. NO.58-C-2019 IN ITA 678-C-18 M/S RAGHAV LIFE STYLE PRODUCT, BADDI 4 &+ ' / BY ORDER, 8 ! / ASSISTANT REGISTRAR