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2009 (9) TMI 710 - HC - Income TaxWhether, on the facts and in the circumstances of the present case, the Tribunal was right in law in deleting the addition made on account of provision for warranty charges holding the same to be definite business liability allowable as deduction during the year under consideration ? Held that:- The assessee-company is entitled to make a provision for the warranty charges holding the same to be a definite business liability allowable as a deduction during the years under consideration, since the same is based on a scientific basis and a consistent policy applied by the assessee- company throughout the world including India and that consistent application of the same principle over the years would remove any advantage which, according to the Revenue, the assessee may have by deferring of its income to the extent of warranty provision to the next year. The present appeals are accordingly dismissed.
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