TMI Blog2020 (8) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee as on 31 March 2015 the revenue doubts on the genuineness of the business activity of the assessee. In our considered view the revenue cannot give different treatment for part of the transaction of the assessee. We are not convinced with the finding of the authorities below. We set aside the finding of the learned CIT (A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed. - ITA No. 204/Rjt/2019 - - - Dated:- 2-6-2020 - Shri Waseem Ahmad, Accountant Member And and Ms. Madhumita Roy, Judicial Member Revenue by : Shri Suhas Mistry, Sr. D. R. Assessee by : Shri Chetan Agrawal, A.R. ORDER PER BENCH : - This assessee s appeal for A.Y. 2015-16, arises from order of the CIT(A)-2, Rajkot dated 17-07-2019, in proceedings under section 143(3) of the Income Tax Act, 1961; in short the Act . 2. The assessee has raised following ground of appeal:- 1. The ld. A.O. had erred in law as well as on facts in making addition of ₹ 4,98,040/- being cash balance as reflected in balance sheet u/s. 68 of the Act. 3. The only issue raised by the assessee is that the learned CIT (A) erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Being aggrieved by the order of the learned CIT (A) the assessee is in appeal before us. 7. The learned AR before us filed a paper book running from pages 1 to 18 and submitted that the cash balance shown as on 31 March 2015 cannot be treated as unexplained cash credit under section 68 of the Act. Therefore, the same cannot be added to the total income of the assessee. 8. On the other hand the learner DR vehemently supported the order of the authorities below. 9. We have heard the rival contentions of both the parties and perused the materials available on record before us. The 1st issue arises whether the provisions of section 68 of the Act can be attracted to the closing balance of cash shown by the assessee as on 31 March 2015. To our mind the answer stands negative. At this juncture we inclined to refer to the provisions of section 68 of the Act which reads as under: Cash credits. 68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t convinced with the finding of the authorities below. Therefore we set aside the finding of the learned CIT (A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed. 13. Before we part with the issue/appeal as discussed above, it is pertinent to note that the clause (c) of rule 34 of the Appellate Tribunal Rules 1963 requires the bench to make endeavour to pronounce the order within 60 days from the conclusion of the hearing. However the period of 60 days can be extended under exceptional circumstances but the same should not ordinarily be further extended beyond another 30 days. In simple words the total time available to the Bench is of 90 days upon the conclusion of the hearing. However, during the prevailing circumstances where the entire world is facing the unprecedented challenge of Covid 2019 outbreak, resulting the lockdown in the country, the orders though substantially prepared but could not be pronounced for the unavoidable reasons within the maximum period of 90 days. In such circumstances we find that the Hon ble Mumbai Tribunal in the case of JSW Limited Vs Deputy Commissioner of Income Tax in ITA No. 6103/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and FMC (i.e. force majeure clause) maybe invoked, wherever considered appropriate, following the due procedure . The term force majeure has been defined in Black s Law Dictionary, as an event or effect that can be neither anticipated nor controlled When such is the position, and it is officially so notified by the Government of India and the Covid-19 epidemic has been notified as a disaster under the National Disaster Management Act, 2005, and also in the light of the discussions above, the period during which lockdown was in force can be anything but an ordinary period. 10. In the light of the above discussions, we are of the considered view that rather than taking a pedantic view of the rule requiring pronouncement of orders within 90 days, disregarding the important fact that the entire country was in lockdown, we should compute the period of 90 days by excluding at least the period during which the lockdown was in force. We must factor ground realities in mind while interpreting the time limit for the pronouncement of the order. Law is not brooding omnipotence in the sky. It is a pragmatic tool of the social order. The tenets of law being enacted on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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