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2023 (8) TMI 883 - AT - Income TaxDisallowance of provision of warranty - whether provision was contingent in nature and same was not based on actual basis? - assessee submitted that the provision was created after making extensive working on a scientific basis and the same is backed by historical trends essential to determine the warranty provisions to be made and the actual expenses incurred against such sales subsequently - HElD THAT:- As it is evident that the provision made by the assessee was ascertained based on the actual expenses incurred on settlement of warranty schemes in earlier years and was based on the scientific exercise of making provision for warranty clause for each and every vehicle sold on a regular basis year on year. We find that the issue is squarely covered in favour of the assessee by the decision of Rotork Controls India Pvt. Ltd. [2009 (5) TMI 16 - SUPREME COURT] Therefore, no infirmity in the impugned order allowing the claim of provision for warranty expenses. Accordingly, grounds raised by the Revenue are dismissed.
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