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TMI Blog2020 (7) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... investment which yielded exempt income in the year under consideration as observed by us hereinabove. Assessee s appeal is thus allowed for statistical purpose. Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [ 2020 (5) TMI 359 - ITAT MUMBAI ] - Shri Pramod Kumar, Vice President And Ms. Madhumita Roy, Judicial Member For the Appellant : Shri Nikunj Gada, AR For the Respondent : Mrs. Samatha Mullamudi, D.R. ORDER PER MS. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 17.01.2018 passed by the Ld. Commissioner of Income Tax (Appeals) 2, Mumbai arising out of the order dated 30.11.2006 passed by the ACIT, Cir-1 (2)(1), Mumbai under section 143(3) of the Income Tax Act, 1961 (hereinafter referred as to the Act ) for Assessment Year 2014-15. 2. The brief facts leading to the case is this that the assessee company engaged in the business of consultancy of insurances and risk management filed its return of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,61,787/- which was under challenge before us. As it appears from the records that the Ld. CIT(A) while confirming this particular addition he has observed that upon due consideration of the proceeding and the judicial pronouncements the Ld. AO made the addition of ₹ 12,61,787/- under Rule 8D(2)(iii). The total quantum of exempt income earned by the assessee was much higher than that of the disallowance made by the Ld. AO and relying upon the judgment passed by the Hon ble Delhi High Court the Ld. AO has been directed to restrict the disallowance to the tune of ₹ 1,685/- and ₹ 12,61,787/- on account of Rule 8D(2)(i) 8D(2)(iii). In this respect we have carefully considered the judgment passed by the Hon ble Delhi Bench in the matter of ACIT vs. Vireet Investment Pvt. Ltd. as relied upon by the Ld. AR. However, we find that the ratio laid down in the said judgment has not been followed in its true spirit. As we find that while making addition of.5% of the average investment under Rule 8D(2)(iii) the Ld. AO considered the entire investment made by the assessee instead of only those investment which yielded exempt income during the year. Thus, having regard to the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 guidelines shall be framed and issued by the President of the Appellate Tribunal within shortest reasonable time and followed strictly by all the Benches of the Tribunal. In the meanwhile (emphasis, by underlining, supplied by us now) , all the revisional and appellate authorities under the Income-tax Act are directed to decide matters heard by them within a period of three months from the date case is closed for judgment . In the ruled so framed, as a result of these directions, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9th 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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