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2015 (8) TMI 552 - ITAT DELHIDisallowance of 50% provision of warranty - CIT(A) deleted addition - Held that:- As find from the figures for nine years the provision was almost equal to the actual expenditure incurred in this regard. In most of the years, the provision made was less than the expenditure incurred. Only in two years, in the financial years 2002-03 and 2008-09, the provision marginally exceeded the actual expenditure incurred. From the above chart, it is evident that the provision made by the assessee was a fair and reasonable estimate of the post sales expenses to be incurred by the assessee in respect of goods supplied by it. Therefore, on these facts, the ratio of the above decisions Rotork Controls India P. Ltd. v. CIT [2009 (5) TMI 16 - SUPREME COURT OF INDIA ] and Vinitec Corporation Pvt. Ltd. [2005 (5) TMI 54 - DELHI High Court] and Ericssion Communications P. Ltd. [2009 (9) TMI 710 - Delhi High Court] would be squarely applicable. Respectfully following the same, we uphold the order of the learned Commissioner of Income-tax (Appeals) and dismiss the appeals filed by the Revenue. - Decided against revenue.
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