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2019 (4) TMI 52 - AT - Income TaxRectification u/s 254 - Mistake apparent from record - Disallowance of deduction u/s 80IC - substantial expansion undertaken by the assessee - claim @ 100% of the eligible profits on substantial expansion undertaken, after having claimed deduction @ 100% of the profits for five eligible years - HELD THAT:- It is now settled law 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 and the decision of the apex court in Classic Binding [2018 (8) TMI 1209 - SUPREME COURT OF INDIA] stands overruled. This in itself 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 contrary in the light of judicial pronouncement rendered subsequently, it discloses a mistake apparent from record. Considering the entirety of facts in the present case, we are therefore of the opinion that this is a fit case for recalling the order for fresh hearing, which we hereby do. The appeal is accordingly recalled for hearing. The order was pronounced in open court. At the request of both the counsels who pointed out that the issue in the impugned appeal was covered by the decision of the Hon'ble Apex Court in the case of Pr.CIT, Shimla vs. M/s Aarham Softronics [2019 (2) TMI 1285 - SUPREME COURT] the appeal was posted for hearing today itself i.e. 28.03.2019.
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