https://www.taxtmi.com/caselaws?id=71393 A reasonably estimated provision for warranty and replacement expenses, based on past experience and a consistent accounting method, is treated as a deductible business liability even if the estimate is later adjusted by write-back. Contributions to genuine employee welfare trusts are also described as revenue expenditure where the trusts serve recurring employee welfare obligations, include employee representation, and do not create an enduring capital asset or offend the rule against perpetuity. On the subject-matter discussed, both deductions were upheld in favour of the assessee and against the Revenue. en-us Mon, 06 Dec 1982 00:00:00 +0530 Fri, 25 Dec 2015 12:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71393 A reasonably estimated provision for warranty and replacement expenses, based on past experience and a consistent accounting method, is treated as a deductible business liability even if the estimate is later adjusted by write-back. Contributions to genuine employee welfare trusts are also described as revenue expenditure where the trusts serve recurring employee welfare obligations, include employee representation, and do not create an enduring capital asset or offend the rule against perpetuity. On the subject-matter discussed, both deductions were upheld in favour of the assessee and against the Revenue. Case-Laws Income Tax Mon, 06 Dec 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71393