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2012 (6) TMI 39 - DELHI HIGH COURTLegality of revision of order of Tribunal u/s 254 on ground of retrospective overruling - Penalty imposed u/s 271(1) if returned income is a loss - Revenue contended that order of Tribunal had been based entirely on the decision of the Supreme Court in Virtual Soft Systems Ltd (2007 (2) TMI 147 - SUPREME COURT] and the latter decision had been subsequently overruled by a larger Bench of the Supreme Court in Gold Coin (2008 (8) TMI 5 - SUPREME COURT] there was a mistake apparent on the face of the record - Held that:- Judicial decision acts retrospectively. Judges do not make law they only discover or find the law. Thus, where a decision of the Supreme Court overrules an earlier decision, the views expressed in the later decision would have to be regarded as having always been the law. The overruling is, therefore, retrospective. In present case, Supreme Court decision in Gold Coin has to be regarded as the law as it existed when the order was passed by Tribunal, there is a clear mistake apparent from the record. Only limitation for correcting the mistake is that imposed by the provisions of Section 254(2) itself and that is only with respect to time. Since, application for rectification having been made in time, the order of the Tribunal recalling its earlier order cannot be faulted.
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