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2019 (11) TMI 586 - AT - Income TaxDisallowance for the provision for warranty - HELD THAT:- Undisputedly the AO admitted the claim of the assessee by allowing of provision for warranty to the extent of 6.4% instead of 8% claim by the assessee by resorting to arithmetic calculation by taking average of the last four years prior to the assessment year under consideration. CIT(Appeals) without bifurcating the commission income and provision for warranty income affirmed the addition only on accrual basis. The assessee contended that the identical issue has already been settled in the judgment cited as CIT Vs. Smt. Paramjeet Luthra [2014 (9) TMI 725 - DELHI HIGH COURT] in favour of the assessee as relied by the Id counsel for the assessee the ratio of which is that in case of provision for warranty services the entire income could not be offered for taxation for the year under assessment when the assessee had few obligations for providing after sales maintenance services and the necessary' expenses is required to be kept for the same - we restore the quarrel to the file of the AO. AO is directed to decide the issue afresh in light of the directions by the coordinate bench given in earlier A.Ys.
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