9911796707
TMI Blog2015 (12) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... income for A.Y. 2008-09 on 30.09.2008 declaring total income of Rs. 12,11,95,820/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 18.10.2010 and the total income was determined at Rs. 12,31,94,908/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 04.08.2011 granted substantial relief to the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us and has raised the following grounds:- 1. The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance of Rs. 2,81,900/- made by the Assessing Officer on account of entrance fees u/s.37 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acilities to the senior employees of the company. Therefore, the admission fee paid towards corporate membership is expenditure wholly and exclusively for the purpose of business and the addition made by the A. O. is accordingly deleted. 5. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us. 6. Before us, ld. D.R. supported the order of A.O. On the other hand ld. A.R. reiterated the submissions made before A.O and ld. CIT(A) and supported the order of ld. CIT(A). 7. We have heard the rival submissions and perused the material on record. The issue in the present case is about allowability of Entrance fees to club as revenue expenses. We find that ld. CIT(A) while deleting the addition has given a finding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the warranty provisions needs to be recognized as the appellant is an enterprise having present obligation as a result of past events resulting in an outflow of resources and the warranty provisions have been made on the basis of a reliable estimate. I am inclined to accept the submission made by the appellant. The appellant has submitted details of the provisions made for the liability. It is noted that the provision is made @ 0.10% of the sales made by the appellant. The warranty expenses form an integral part of the sale of shelters. The method of accounting followed by the appellant in respect of the warranty provision is also consistent and is based on definite scientific method. The appellant makes a provision for the warranty on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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