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TMI Blog2019 (12) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 2009-10. 2. The grounds of appeal urged by the assessee relate to the following two issues:- (a) Disallowance of Provision for Warranty (b) Disallowance of provision for stock obsolescence. 3. At the time of hearing, the Ld A.R submitted that both the issues cited above are covered by the decision rendered by the coordinate bench in the assessee's own case relating to AY 2008-09 in ITA No.92/Bang/2013 dated 19-06-2015. On the contrary, the Ld D.R submitted that the assessee has not furnished the basis for working out the Provision in both the cases and hence the Ld CIT(A) has confirmed the disallowance. 4. We heard the parties on these two issues and perused the record. As submitted by Ld D.R, the Ld CIT(A) had confirmed bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a liability is a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources and in respect of which a reliable estimate is possible of the amount of obligation. As stated above, the case of Indian. Molasses Co. Pvt. Ltd., (supra) is different from the present case. As stated above, in the present. case we are concerned with an army of items, of sophisticated (specialized) goods manufactured and sold by the assessee whereas the case of Indian Molasses Co. Ltd. (supra) was restricted to an individual retiree. On the other hand, the case of Metal Box Co. of India Ltd, (supra) pertained to an army of employees who were due to retire in future. In that case the company had estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icated goods would be entitled to deduction from the gross receipts under section 37 of the 1961 Act. It would all depend on the data systematically maintained by the assessee. It may be noted that in all the impugned judgments before us the assessee(s) has succeeded except in the case of civil Appeal Nos. 3506-3524 of 2009 - Arising out of S.L.P.(G) Nos. 14178-14182 of 2007 - Rotork Controls India 'P.) Ltd. v. CIT, in which the Madras High Court has overruled the decision of the Tribunal allowing deduction under section 37 of the 1961 Act. However, the High court has failed to notice the "reversal'" which constituted part of the data systematically maintained by the assessee over last decade. 18. For the above reasons, we set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the accounting standards. In this case, the assesee instead of taking stock at the realization, value to the P&L account has made provision to debit Profit & Loss account which means the closing stock is taken to the P&L account without reducing the value due to obsolescence/ diminution in the value of the inventory. The only point is to be taken care of is to ensure that the opening stock of subsequent year shall be taken at the value after reducing the provision made for this year. Accordingly, except the above observation and fact to be verified that the value of opening stock of the subsequent year is to be correctly taken after reducing the provision made for this year from the c1osin stock, we do not find any reason to interfere w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said issue:- 12. The revenue is in appeal challenging the direction of the DRP directing income from administrative services as part of operating revenue. The revenue raised the following grounds of appeal: 1. The directions of the Dispute Resolution Panel are opposed to law and facts of the case. 2. On the facts and in the circumstances of the case, the Dispute Resolution Panel erred in directing the TPO/AO to exclude the income of Rs. 2,33,97,997 received as Administrative Services, even when this is attributable to income from other sources which is not attributable to the business and cannot be considered as operating revenue. 3. For these and other grounds that may be urged at the time of hearing, it is prayed that the directio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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