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2013 (12) TMI 15 - AT - Income TaxValidity of assessment u/s 147 – Change of opinion – Held that:- The assessee has included labour charges receipts, while computing the profits of the eligible business under the head sales - Once, the Hon’ble Supreme Court interprets any law and lays down its decision on such interpretation of law then, such judicial decision applies retrospectively - The courts do not make any new law, they only discover and find the correct interpretation of the law, as if it is always the same and such a correct principle of law subsequently laid down by the Hon’ble Supreme Court applies retrospectively - Following the decision of the Hon’ble Supreme Court in the case of K.Ravindranathan Nair [2007 (11) TMI 10 - Supreme Court of India] - Such kind of charges i.e. labour charges have to be reduced by 90% while computing the profits of the business eligible for deduction under Section 80HHC and such a reduction is to be made from gross total income and would be included in the total turnover as per the formula given in Section 80HHC(3) - Such a law applies retrospectively overriding all the view taken earlier - There is no question of "change of opinion" because the earlier opinion was not in accordance with the provisions of law and subsequent decision of the Hon’ble Supreme Court reversing the earlier interpretation of law does constitute fresh material coming in possession of the Assessing Officer, so as to clothe him with the jurisdiction to reopen the case u/s.147 – Decided against assessee. While reducing the 90% labour charges receipts only the net labour charges should be reduced after setting off the labour charges paid – Following Hon’ble Supreme Court in the case of ACG Associates Capsules Pvt. Limited [2012 (2) TMI 101 - SUPREME COURT OF INDIA] - Only the net labour charges should be reduced while computing the deduction under Section 80HHC – Decided in favour of assessee.
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