TMI Blog2015 (2) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... IA] - Decided in favour of the Assessee. - Tax Appeal No. 1291 of 2008 - - - Dated:- 12-1-2015 - Jayant Patel And S. H. Vora,JJ. For the Appellant : Mr. K. M. Parikh For the Respondent : None ORDER (Per : Honourable Mr. Justice Jayant Patel) 1. The following substantial question of law has been formulated :- Whether the Income Tax Appellate Tribunal was right in law and on facts in deleting addition of ₹ 9,68,740/- made under the head provisions made on account of warranty which is in the nature of contingent liability? 2. It further appears that at the time of admission, it was ordered that this appeal be heard with Tax Appeal No.1302 of 2008. 3. The learned counsel appearing for both the sides bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied with the impugned order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench (hereinafter referred to as 'the Tribunal') dated 28.04.2006 in ITA Nos. 762/Ahd/2001 for the Assessment Year 1997-98, the revenue has preferred the present Tax Appeal. 1.1 This appeal was admitted by this Court for consideration of the following substantial question of law: Whether the ITAT was right in law and on facts in deleting the addition of ₹ 42,21,368/- made under the head provision made on account of warranty which is in the nature of contingent liability? 2. The assessee had made provision of ₹ 42,21,368/- on account of warranty and reduced this figure from the total sales recorded in the books of account. Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as a result of past events resulting in an outflow of resources and a reliable estimate could be made of the amount of the obligation. Therefore, the assessee therein had incurred a liability during the assessment year which was entitled to deduction u/s.37 of the Income-tax Act, 1961. 3.1 In Tax Appeal No. 966 of 2007 and allied matters, similar facts and question of law were raised and this Court vide judgement and order dated 26.11.2014 in the case of The Income Tax Officer, Baroda vs. Kevin Enterprise has already answered the question in favour of assessee relying upon the decision of the Apex Court in the case of Rotork Controls India Pvt. Ltd. (supra). 4. Mr. K.M. Parikh, learned counsel appearing for the Revenue was not i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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