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TMI Blog2017 (9) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... y, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 3. The brief facts qua the first issue relating to warranty expenses are that, the assessee is engaged in the business of manufacturing of 'Power Steering' and bulk of sale is made to Maruti Udyog Ltd (MUL). The Assessing Officer noted that the assessee had claimed expenses of Rs. 1,46,98,694/- as warranty expenses from its gross receipts. In response to the show cause notice to furnish the documentary evidences to establish that these expenses were actually incurred for the purpose of business, the assessee submitted the following break of warranty expenses:- Warranty defects claimed by Maruti Suzuki India Ltd. and deducted from subsequent payments. Rs. 12,76,973/- Provision for warranty made at the rate of 1% of weighted average turnover. Rs. 1,34,21,722/- Total Expenses Rs. 1,46,98,694/- 4. As regards the expenses of Rs. 12,76,973/-, the assessee has furnished payment advisory receipts from the customers; and for the provision of warranty, the assessee had given the calculation on the basis of which provision for warranty has been debited along with the copy of ledg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that this issue had come up for consideration before the Tribunal in assessee's own case for the A.Y. 2009-10, wherein the Tribunal has set aside this issue to the file of the Assessing Officer for the provision of details/expenses, evidences filed by the assessee to allow the claim following the ratio laid down by the Hon'ble Supreme Court in the case of M/s. Rotork Controls India Pvt. Ltd. vs. CIT (surpa). However he submitted that in this all the details have been placed and duly considered by the authorities below, therefore, there is no requirement to set-aside the matter before the AO in this year. 8. We have heard the rival submissions and perused the relevant findings given in the impugned orders. The assessee company, who is into manufacturing and selling of electric power steering and emission related parts makes bulk of sale to Maruti Udgyog Ltd. It provides standard warranty to its customers which forms integral part of the sale price. The warranty can be invoked in the event of any electric power steering becomes defective within the 24 months from the date of actual use or the vehicle/ car has run for 40,000 kms., whichever is earlier. Similarly, in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are remitting back the matter to the file of the Assessing Officer to examine the entire details of the provisions made by the assessee in the earlier years and also in the subsequent years and also to see whether such a provision made has some rational and scientific evaluation and no excess provision is being made with this direction, ground no. 1 as raised by the revenue is allowed for statistical purposes. 9. Now coming to the second issue as raised in the ground no. 2 which is on account of cash discount given to the customers for early payments, it is seen from the assessment order that AO had made the disallowance on the ground that no material evidences was furnished by the assessee in support of cash discount expenses claimed. The Assessing Officer had further noted that the assessee had not given details such as total amount of bill, date of bill, description of goods supplied, therefore, he came to the conclusion that correctness of amount; the quantum of deduction claimed; and what rate and for which period it has been given, is not verifiable. He thus came to the conclusion that the assessee has not filed proper evidence and accordingly, he disallowed the entire cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be seen. We find that exactly same issue had come up for consideration before the Tribunal, wherein the said issue has been set aside to the file of AO to verify the quantum of cash discount. Accordingly, in this year also relying upon the same direction, we set aside this issue to the file of the Assessing Officer to verify the details of cash discount and if it is found that the customers while making the payment before 30 days have deducted the cash discount, then same is to be allowed. With this direction the ground no. 2 is set aside to the file of the Assessing Officer, who shall provide proper opportunity to the assessee to place the relevant details and substantiate its claim. Accordingly ground no.2 is allowed for statistical purposes. 13. In the cross objection the assessee has raised following grounds of appeal:- "1. On the facts and circumstances of the case, the appeal filed by the DCIT Circle 8(1) (Ld. Assessing Officer) is bad, both in the eyes of law and on facts. 2. On the facts and circumstances of the case, the Ld. Assessing Officer has failed to appreciate the order the Ld, CIT(A). 2.1. On the facts and circumstances of the case, the Ld. 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