Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
ITAT affirms deletion of warranty provision addition in P&L Account, citing Accounting Standard 29. The ITAT Bangalore Bench upheld the CIT(A) order deleting the addition for disallowance of provision of warranty debited to the P & L Account, ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
ITAT affirms deletion of warranty provision addition in P&L Account, citing Accounting Standard 29.
The ITAT Bangalore Bench upheld the CIT(A) order deleting the addition for disallowance of provision of warranty debited to the P & L Account, amounting to Rs. 1,42,01,453. The department's appeal was dismissed as the CIT(A) decision was supported by compliance with Accounting Standard 29 and a previous order for A.Y. 2005-06. The cross objection by the assessee was deemed infructuous due to the dismissal of the department's appeal and the affirmation of the CIT(A) order.
Issues involved: Appeal by department against CIT(A) order deleting addition for disallowance of provision of warranty debited to P & L Account.
Departmental Appeal: - Grounds raised by department include deletion of addition amounting to Rs. 1,42,01,453 made on account of disallowance of provision of warranty. - AO disallowed the claim based on lack of scientific basis for provision. - Assessee argued provision was made in compliance with Accounting Standard 29. - CIT(A) deleted the addition based on earlier order for A.Y. 2005-06. - ITAT upheld CIT(A) decision citing similar facts to previous year's case.
Cross Objection by Assessee: - No specific relief sought, only support for CIT(A) order. - Cross objection deemed infructuous as department's appeal was dismissed and CIT(A) order upheld.
The ITAT Bangalore Bench, comprising Shri N.K. Saini and Smt. P. Madhavi Devi, heard the appeal by the department and cross objection by the assessee against the CIT(A) order dated 11.01.2011. The department's appeal focused on the deletion of addition related to disallowance of provision of warranty, amounting to Rs. 1,42,01,453. The AO disallowed the claim stating lack of scientific basis, while the assessee argued compliance with Accounting Standard 29. The CIT(A) deleted the addition based on an earlier order for A.Y. 2005-06, which was upheld by the ITAT citing similar facts. The cross objection by the assessee, supporting the CIT(A) order, was deemed infructuous as the department's appeal was dismissed and CIT(A) order upheld.
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