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2011 (1) TMI 657 - HC - Income TaxDisallowance - provision for warranty claims & royalty - It is claimed by the assessee that on the basis of the report undertaken by the independent agency applying the scientific method considering number of products sold under warranty provisions of Rs. 3.09 crores was made in the year in question - assessee has obtained a report of an Actuary for making the provision - It is settled law that even though there is some difficulty in estimation, it would not convert the accrued liability into an additional one or a contingent liability - It is thus to be borne in mind that on the facts of that case the Court had found that there was no ascertained liability which was contingent on happening of certain event and even the payment made was merely contingent -
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