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2019 (4) TMI 1775 - AT - Income TaxDisallowance of provision for warranty - HELD THAT:- As submitted that this Tribunal remanded issue back to Ld.AO to re-compute income received by assessee on account of commission and services including warranty obligation by applying rationale initiated by Hon’ble Supreme Court in case of Rotork Controls India P. Ltd. Vs. CIT [2009 (5) TMI 16 - SUPREME COURT] . He submitted that subsequently, in remand proceedings Ld. AO adopted reasonable approach to take provision of expenditure in carrying on warranty at the rate of 7% instead of 6.4% as contended by department as against 8% by assessee. We thus are inclined to set aside this issue back to file of AO in order to decide the issue afresh regarding claim of warranty expenses as per law. Needless to say that proper opportunity is to be granted to assessee as per law.
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