https://www.taxtmi.com/caselaws?id=77088 The court upheld the deduction of provision for warranty claims, emphasizing the importance of a scientific approach based on historical trend analysis and experience-based estimation. The court rejected accounting on a cash basis or only when a claim is made, favoring a provision grounded in past experience and turnover percentage. Regarding the allowability of provision for warranty claims under Section 115JB of the Income Tax Act, the court affirmed the deduction despite the absence of a scientific basis, finding the method of computation adopted reasonable and consistent over time. The court dismissed the appeals, stating no substantial question of law arose. en-us Mon, 05 Jul 2010 00:00:00 +0530 Tue, 11 Dec 2012 18:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=77088 The court upheld the deduction of provision for warranty claims, emphasizing the importance of a scientific approach based on historical trend analysis and experience-based estimation. The court rejected accounting on a cash basis or only when a claim is made, favoring a provision grounded in past experience and turnover percentage. Regarding the allowability of provision for warranty claims under Section 115JB of the Income Tax Act, the court affirmed the deduction despite the absence of a scientific basis, finding the method of computation adopted reasonable and consistent over time. The court dismissed the appeals, stating no substantial question of law arose. Case-Laws Income Tax Mon, 05 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=77088