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2021 (2) TMI 1337 - HC - Income TaxEstimation of provision done for warranty - Whether, the Tribunal has committed an error of law in holding that the estimate of provision done by the assessee for warranty is scientific and satisfies the condition set out in M/s. ROTORK CONTROLS INDIA PRIVATE LIMITED [2009 (5) TMI 16 - SUPREME COURT] and by not taking into account the facts enumerated by the assessing officer in the assessment order, from which it is evident that the assessee has done excessive provisioning for warranty for reducing the tax liability? - HELD THAT:- For the reasons assigned by us in the judgment passed today in I.T.A.No.1034/2017, the first substantial question of law is answered against the revenue. Allowance of additional provision for leave encashment and provision on warranty to the book profit for the purpose of calculating the book profit under Section 115JB - The second substantial question of law has been answered against the revenue in decision of the Supreme Court in Bharath Earth Movers vs. Commissioner of Income Tax [2000 (8) TMI 4 - SUPREME COURT] the aforesaid submission could not be disputed by learned counsel for the revenue.
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