Pursuant to a dredging contract awarded by New Mangalore Port Trust (NMPT) in 1994, assessee Dutch Company opened a site office there and upon completion of project in 1995-96, assessee closed it.  Appellant made claims on NMPT for additional work performed while NMPT made counter claim for loss due to delay in completion of contract. In 1998, Arbitral award was passed in favour of appellant. Ultimately issue reached before High Court, but NMPT withdrew its appeal and in September, 2000, paid assessee Rs. 30.79 crores. In return of income, this amount was reduced from business profit for determining taxable income. In support of its stand, assessee annexed a Note that relying upon content of India-Netherlands Treaty said amount was not taxable. Assessee’s contention, based on Article 5, read with article 7 of DTAA, was that amount of said arbitration award was not taxable in India since there was no permanent establishment in India in Financial Year 2000-01 for NMPT project.  Tribunal held that though such explanation had not been found to be false by authorities below, same was not, however, found tenable by them, said amount was brought to tax and penalty proceeding had been initiated. Tribunal held that since explanation given by assessee was supported by rational supporting evidences, bonafides should be taken as proved. Accordingly the penalty was deleted. Tribunal also held that  in computing time limitation for pronouncement of order by Tribunal, nation wide COVID 19 lockdown period was to be excluded.(AY. 2001-02)