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2014 (6) TMI 332 - AT - Income TaxConfirmation of penalty u/s 271(1)(c) of the Act – Adjustment made to returned income - Disallowance of provision on completed/uncompleted contracts – Held that:- What all the assessee is required to demonstrate, more so in the penalty proceedings, is that the estimates are valid and no more, i.e., are sound, based on cogent material – it should be admissible as a cost, on the basis of the percentage of the work completed - the assessee stating to be following the method, as also agree with the matching cost principle – Relying upon Bharat Earth Moers vs. CIT [2000 (8) TMI 4 - SUPREME Court] - the matter cannot be decided on generalized statements or assumptions, but would need to be factually determined, separately qua each provision, even as was done by the tribunal in the quantum proceedings – thus, the matter is required to be CIT(A). Disallowance of software expenses and disallowance of deduction u/s.80-HHB – Held that:- There is no question of any penalty in view of the order by the tribunal in the quantum proceedings deleting the disallowance -even where challenged by the Revenue, i.e., assuming so, its acceptance by the tribunal - the matter posing mixed question of fact and law, would exclude penalty – Decided partly in favour of Revenue.
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