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2023 (6) TMI 624 - HC - Income TaxBusiness expenses claimed under the head of “Provision for Warranty Expenses” - addition u/s 37 - HELD THAT:- We see that the Assessee company has not committed any error in making provisions inasmuch as large number of sophisticated goods were being manufactured in the past and if the facts established show that defects existing in some of the items manufactured and sold then the provision made for warranty in respect of the army of such sophisticated goods would be entitled to deduction from the gross receipt u/s 37 of 1961 Act. Consequently, the issue of provision of warranty in the facts and circumstances of the case goes in favour of the Assessee and against the Revenue. Provision of Liquidated Damage, Miscellaneous Provisions and Provision for Leave Travel Assistance, Sales Promotion - ITAT allowed deduction - HELD THAT:- We see that the Assessee has not committed any violation of the provisions of the I. T. Act and its Rules. As a matter of fact, learned I.T.A.T. has discussed each and every ground raised by the Revenue in detail and rejected the contentions of the Revenue and dismissed their appeal filed before it. We hold that no error has been committed by the learned tribunal in rejecting the claim of the respondent revenue and dismissing the respective appeals.
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