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2013 (9) TMI 887 - DELHI HIGH COURTWhether the provision of warranty as claimed is based upon scientific and rational basis or not – Held that:- Provision for warranty on the basis of principle for matching can be allowed but the amount claimed should have some rational and scientific basis and it cannot be on mere ipsi dixit – Reliance has been placed upon the judgment in the case of Woodward Governor India Limited [2010 (1) TMI 33 - DELHI HIGH COURT], wherein it has been held that provision for warranty has to be on actuarial valuation. Matter requires in-depth and proper factual examination – For, the purpose, the matter remitted to the Assessing Officer, who will examine the provision for warranty as claimed, including the actual warranty expenses incurred during the year and then determine and decide the quantum of the claim.
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