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2019 (1) TMI 1792 - HC - Income TaxRevision u/s 263 - provision for warranty - Tribunal quashing the revision order of CIT-A - HELD THAT:- Provision made on the basis of turnover on same or similar percentage year after year follows a rationale and scientific method of making a provision for such warranty. The actual claims made by the customers against such warranty provision cannot be the sole criteria, to be labelled as the scientific method, as contended by the Revenue, before us. It is the consistency and the commercial prudence of the assessee, in which the assessee chose to make a provision for warranty based on his total turnover figure, which cannot be said to be unscientific, by any stretch of imagination. Such decisions, taken in normal commercial prudence, cannot be interfered with or superseded by the tax authorities. Tribunal was perfectly justified in holding that the revisional proceedings under section 263 of the Act in such circumstances were not at all justified. Accordingly, we answer the question of law, framed above, in favour of the assessee
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