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2011 (11) TMI 18 - HC - Income TaxAllowable expenditure - Fabricating the body of buses - warranty for five years - Held that:- as per amended agreement dated 20.3.1993 the liability of the assessee for post-manufacturing defects in the body of the buses was discharged after the Haryana Roadways had debited a sum of Rs. 2,000/- per vehicle for discharging the assessee of its entire liability on account of guarantee/ warranty and, therefore, the Tribunal was not justified in restricting the amount of deduction at Rs. 1,000/- per vehicle. Moreover, there being no material before the authorities to restrict the deduction to an amount other than as claimed by the assessee, in such circumstances, it is held that the assessee was entitled to deduction of Rs. 2,000/- per vehicle. - Decided in favor of assessee.
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