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2020 (6) TMI 23 - AT - Income TaxBogus purchases u/s 69C - CIT- A restricted addition to 5% - HELD THAT:- Cash purchases from other parties though those were not recorded in the books of accounts otherwise the sales made could not have taken place. The assessee took bills only from the five parties as accommodation to explain such purchases. Having regard to the particular aspect of the matter when the appellant has already recorded a Gross Profit of 3.56% in his books and the sales has not been doubted, we find no ambiguity in restricting such disallowance to 5% of the alleged bogus purchases by the Ld. CIT(A) so as to warrant interference. We find no merit in the appeal preferred by the Revenue. The order is, therefore, passed in the affirmative i.e. in favour of the assessee and against the Revenue. Pronouncement of order after the expiry of 90 days from the date of conclusion of hearing - Covid 19 epidemic - world wide lockdown - HELD THAT:- Period of lockdown cannot be treated as an ordinary period during which the normal time limits are to remain in force - Without the words “ordinarily”, in the light of the above analysis of the legal position, the period during which lockout was in force is to excluded for the purpose of time limits set out in rule 34(5) of the Appellate Tribunal Rules, 1963. Exception, to 90- day time-limit for pronouncement of orders, inherent in rule 34(5)(c), with respect to the pronouncement of orders within ninety days, clearly comes into play in the present case. Of course, there is no, and there cannot be any, bar on the discretion of the benches to refix the matters for clarifications because of considerable time lag between the point of time when the hearing is concluded and the point of time when the order thereon is being finalized, but then, in our considered view, no such exercise was required to be carried out on the facts of this case.
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