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2016 (11) TMI 1149 - ITAT VISAKHAPATNAMPenalty levied u/s 271(1)(c) - Held that:- A.O. was not correct in coming to the conclusion that the assessee has concealed particulars of his income or furnished inaccurate particulars of income, as the undisclosed income determined by the A.O. based on the directions of the ITAT is on estimation basis. The ITAT has estimated the work in progress for the assessment year 2005-06 and re-apportioned the gross profit on equitable gross profit distribution method based on the assessee’s own book results. There is no factual difference in contract receipt admitted by the assessee and contract receipt determined by the A.O. from the MIMS project. Except preponement of recognition of revenue, there is no difference in income admitted by the assessee from the MIMS project, therefore, we are of the view that the A.O. was erred in levying penalty for concealment of particulars of income or furnished inaccurate particulars of income under the provisions of section 271(1)© of the Act, hence, we direct the A.O. to delete the penalty levied u/s 271(1)(c) of the Act for the assessment year 2003-04 to 2005-06.
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