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2020 (5) TMI 649 - ITAT DELHIDisallowance of provision for warranty - assessee is engaged in the business of manufacturing and trading of toys for heavy vehicles, which are sold along with warranty, the moment the sale takes place, the assessee places itself under the obligation to replace during the warranty period, free of cost, any competent suffering from manufacturing defects - HELD THAT:- As rightly pointed out by the Ld. AR, assessment order nowhere show that the learned AO considered the details furnished by the assessee along with the letter dated 17/02/2014 not ready comment on such details as to their consistency and genuineness. It is only on verification of the record CIT(A) found that the learned AO added in observing that no details are scientific method of computation of provision for warranty was filed by the assessee, because such details to be found in record being filed alongwith the reply dated 17/02/2014. There is no reason for us not to believe the factual findings returned by the Ld. CIT(A) after going through the record. A reading of the orders of the authorities below not support the argument advanced on behalf of the Revenue. From the record that against the order of the Ld. CIT(A) for assessment year 2010-11 [2019 (3) TMI 1782 - ITAT DELHI]. Tribunal while following the decision of the Hon’ble Supreme Court in the case of Rotork Controls India Ltd [2009 (5) TMI 16 - SUPREME COURT]upheld the findings of the Ld. CIT(A) in deleting the disallowance. There is no dispute that the facts involved for this year are similar to the facts involved for the immediately preceding year, i.e. 2010-11 - we uphold the findings of the Ld. CIT(A) and while allowing ground No.1, direct the learned Assessing Officer to delete the disallowance and consequential addition. Addition on account of processing fee and interest paid - HELD THAT:- Having accepted that the assessee had offered ₹ 66,18,000/- paid as processing fee for taxation, the assessing officer shall not be heard to say anything contrary. Finding of the Ld. CIT(A) do not suffer any legal infirmity. Insofar as the amount of ₹ 5,78, 387/- is concerned, assessee had deducted the TDS on interest amount and, therefore, the addition is unsustainable. Ground No. 2 of the Revenue’s appeal is devoid of merits and is dismissed.
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