M/s Vardhman Industries, Solan V. DCIT, Circle, Parwanoo

MA 63/CHANDI/2019

• Counselvise Citation: [2019] 129 COUNSELVISE.COM (IT) 9919 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 19-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: MADAN GOPAL GARG
• Section: 80IC

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH , . '.., # $, %& BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER M.A. NOS. 63 & 64/CHD/2019 ( ARISING OUT OF ITA NOS. 788 & 789/CHD/2018 DECIDED VIDE ORDER 22.10.2018) / ASSESSMENT YEARS : 2012-13 & 2013-14 M/S VARDHMAN INDUSTRIES, 55, HPSIDC INDUSTRIAL AREA, BADDI, DISTT. SOLAN (H.P.) THE DCIT, CIRCLE. PARWANOO ./PAN NO: AAEFV7858F APPELLANT /RESPONDENT /ASSESSEE BY : SH. MADAN GOPAL GARG, AR ! / REVENUE BY : SH. MANJIT SINGH, CIT DR ' # $ /DATE OF HEARING : 06.08.2019 %&'( $ / DATE OF PRONOUNCEMENT : 06.08.2019 %(/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT MISC. APPLICATIONS (RECEIVED ON 19.3.20 19) ARISING OUT OF ITA NOS. 788 & 789 /CHD/2018 HAS BEEN MOVED BY THE ASSESSEE PLEADING THEREIN FOR RECALLING THE COMMON ORDER D ATED 22.10.2018 OF THE TRIBUNAL. M.A. NOS. 63 & 64-C-2019 IN ITAS 788 & 789-C-18 M/S VARDHMAN INDUSTRIES, SOLAN 2 2. IT WAS POINTED OUT THAT THE IMPUGNED APPEALS REL ATING TO ALLOWANCE OF DEDUCTION U/S 80IC OF THE INCOME TAX ACT, 1961(H EREINAFTER REFERRED TO AS 'ACT') @ 100% OF THE ELIGIBLE PROFITS, ON SUB STANTIAL EXPANSION UNDERTAKEN BY THE ASSESSEE. THAT EARLIER THE ITAT H AD ALLOWED THE APPEALS OF THE REVENUE FOLLOWING THE DECISION DATED 20.8.2018 OF THE HON'BLE SUPREME COURT DECIDED IN FAVOUR OF THE REVE NUE IN THE GROUP OF CASES WITH THE LEAD CASE AS CIT VS. M/S CLASSIC BI NDING INDUSTRIES, IN CIVIL APPEAL NO(2) 7208 OF 2018. IT IS FURTHER S UBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE ISSUE NOW STANDS COVERED WITH THE RECENT JUDGMENT OF HON'BLE SUPREME COURT PASSED IN CASE OF PR CIT VS. AARHAM SOFTRONICS, WHEREIN, THE ORDER OF CIT(A) V S. CLASSIC BINDING INDUSTRIES IN CIVIL APPEAL NO(S) 7208 OF 2018 DATE D 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 ARE 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 HA S BEEN HELD THAT EVEN A NEW UNDERTAKING WHICH HAS CLAIMED DEDUCTION OF ITS ELIGIBLE M.A. NOS. 63 & 64-C-2019 IN ITAS 788 & 789-C-18 M/S VARDHMAN INDUSTRIES, SOLAN 3 PROFITS @ 100% THEREOF FOR THE FIRST FIVE YEARS IS ENTITLED TO CLAIM DEDUCTION @ 100% OF ITS PROFITS THEREAFTER ON ACCOU NT 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 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 SUBSEQ UENTLY, IT DISCLOSES A MISTAKE APPARENT FROM RECORD. HENCE, A MISTAKE APPA RENT ON RECORD HAS OCCURRED IN THE ORDER DATED 22.10.2018 OF THIS TRIB UNAL. HENCE, THIS IS A FIT CASE FOR RECALLING THE SAID COMMON ORDER AND FO R FRESH HEARING, WHICH WE HEREBY DO. 5. THE ORDER DATED 22.10.2018 IS ACCORDINGLY RECALL ED, THE APPEAL IS RESTORED AND POSTED FOR HEARING AFRESH FOR TODAY I. E. 06.08.2019. IN THE RESULT, THE MISCELLANEOUS APPLICATIONS FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06.08.2019. SD/- SD/- ( ' . . , # $ / B.R.R. KUMAR) %& / ACCOUNTANT MEMBER ( / SANJAY GARG ) / JUDICIAL MEMBER DATED : 06.08.2019 M.A. NOS. 63 & 64-C-2019 IN ITAS 788 & 789-C-18 M/S VARDHMAN INDUSTRIES, SOLAN 4 ** &+ ,- .- / 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 &+ ' / BY ORDER, 8 ! / ASSISTANT REGISTRAR