TMI Blog2020 (11) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... h gross negligency on the part of the assessee and thus in our considered opinion the penalty should be justified for an inadvertent mistake committed by the assessee. Hence, penalty order is found to be devoid of any merit and hereby quashed. Appeal filed by the assessee is allowed. - ITA No. 224/Rjt/2018 - - - Dated:- 29-6-2020 - Shri Waseem Ahmed, Accountant Member And Ms. Madhumita Roy, Judicial Member For the Assessee : Written Submission For the Revenue : Mrs. Namita Khurana, Sr. DR ORDER PER MADHUMITA ROY JUDICIAL MEMBER: The assessee has come up in appeal against the order dated 23.11.2016 passed by the CIT(A), Jamnagar whereby and whereunder penalty to the tune of ₹ 24,770/- under section 271(1)(c) of the Income Tax Act, 1961(hereinafter referred as to the Act ) on account of concealment of interest income of ₹ 80,164/- on income tax refund has been confirmed. 2. There is an application of condonation of delay of 49 days filed by the assessee. A plea taken by the assessee is this that the office of the assessee is located 35 kilometres away from Jamnagar city. The assessee could collect the order impugned only on 05.02.2018 fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was any default on the part of the assessee to ensure compliance with statutory requirement. According to us, merely because there is a provision for the imposition of penalty, the officer must not exercise his jurisdiction and impose penalty in every case. Penalty, in our considered opinion, should be imposed for the failure to perform a statutory application, which is of course a matter of discretion of the authority to be exercised strictly judicially. As we find, that the omission on the part of the assessee is a bona fide mistake. Such bona fide mistake cannot be called a reasonable cause for imposing penalty. We also get the inspiration from the judgment passed by the Hon ble Supreme Court as cited above as relied upon by the assessee. Penalty is not uniform and its imposition depends upon exercising of discretion by the taxing authorities and is imposed as part of the machinery for assessment of tax liability. The word mentioned in the statute may direct that such person shall pay by way of penalty under section 271 definitely leave certain amount of discretion in imposing penalty which need to be imposed when there is a minor breach of law and when having regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing of the case was concluded but, where it is not practicable so to do on the ground of exceptional and extraordinary circumstances of the case, the Bench shall fix a future day for pronouncement of the order, and such date shall not ordinarily (emphasis supplied by us now) be a day beyond a further period of 30 days and due notice of the day so fixed shall be given on the notice board. 8. Quite clearly, ordinarily the order on an appeal should be pronounced by the bench within no more than 90 days from the date of concluding the hearing. It is, however, important to note that the expression ordinarily has been used in the said rule itself. This rule was inserted as a result of directions of Hon ble jurisdictional High Court in the case of Shivsagar Veg Restaurant Vs ACIT [(2009) 317 ITR 433 (Bom)] wherein Their Lordships had, inter alia, directed that We, therefore, direct the President of the Appellate Tribunal to frame and lay down the guidelines in the similar lines as are laid down by the Apex Court in the case of Anil Rai (supra) and to issue appropriate administrative directions to all the Benches of the Tribunal in that behalf. We hope and trust that suitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarified that while calculating time for disposal of matters made time-bound by this Court, the period for which the order dated 26th March 2020 continues to operate shall be added and time shall stand extended accordingly , and also observed that arrangement continued by an order dated 26th March 2020 till 30th April 2020 shall continue further till 15th June 2020 . It has been an unprecedented situation not only in India but all over the world. Government of India has, vide notification dated 19th February 2020, taken the stand that, the corona virus should be considered a case of natural calamity and FMC (i.e. force majeure clause) may be 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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