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2018 (9) TMI 1990 - AT - Income TaxDisallowance of Provision of warranty and After Sales Cost - allowable deduction u/s 37 - HELD THAT:- Claim of the assessee in principle is allowed by the Hon’ble Jurisdictional High Court in assessee’s own case in many assessment years i.e. 1998-99 to 2009-10. It is also evident from the above table that the Assessing Officer himself allowed claimed of the assessee in assessment year 2002-03 and 2009-10. In same assessment year, the Department accepted the said decision of the Tribunal and never filed appeal before the Hon'ble Bombay High Court. As such, decision of CIT (A) is, in principle, as per judgment laid down by the Hon'ble Apex Court in the case of Rotork Controls India Ltd. [2009 (5) TMI 16 - SUPREME COURT]. It is a settled legal principle that in any case where estimation is done based on scientific method and calculated properly, the provision made for warranty in respect of goods should be allowed u/s. 37 (1) - Decided in favour of assessee.
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