https://www.taxtmi.com/caselaws?id=121604 The Tribunal upheld the CIT(Appeals)'s decision to delete the addition of Rs. 11,24,04,000 for service warranty provisions under section 37(1) of the Income-tax Act. It determined that the provision was a legitimate business expense, calculated using historical data and scientific methods, thus constituting a definite liability rather than a contingent one. The Tribunal dismissed the revenue's appeal, affirming that the liability was reasonably estimable and consistent with commercial practices and accepted accounting principles. en-us Fri, 30 Jan 2009 00:00:00 +0530 Mon, 04 Dec 2023 15:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121604 The Tribunal upheld the CIT(Appeals)'s decision to delete the addition of Rs. 11,24,04,000 for service warranty provisions under section 37(1) of the Income-tax Act. It determined that the provision was a legitimate business expense, calculated using historical data and scientific methods, thus constituting a definite liability rather than a contingent one. The Tribunal dismissed the revenue's appeal, affirming that the liability was reasonably estimable and consistent with commercial practices and accepted accounting principles. Case-Laws Income Tax Fri, 30 Jan 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121604