https://www.taxtmi.com/caselaws?id=206845 Contractual liability for post-manufacturing defects and warranty-related maintenance was deductible at the agreed rate where the assessee was bound under the bus supply arrangement to bear rectification, repair and defect-removal costs. The agreement allowed a fixed amount to be settled by mutual consent, and the record showed that the higher amount had been withheld towards the assessee's full liability. In the absence of material supporting a lower allowance, restricting the deduction to a reduced per-vehicle amount was unjustified. The deduction was therefore allowed at the agreed per-vehicle amount, and the question of law was answered in favour of the assessee. en-us Tue, 08 Nov 2011 00:00:00 +0530 Thu, 13 Dec 2012 14:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206845 Contractual liability for post-manufacturing defects and warranty-related maintenance was deductible at the agreed rate where the assessee was bound under the bus supply arrangement to bear rectification, repair and defect-removal costs. The agreement allowed a fixed amount to be settled by mutual consent, and the record showed that the higher amount had been withheld towards the assessee's full liability. In the absence of material supporting a lower allowance, restricting the deduction to a reduced per-vehicle amount was unjustified. The deduction was therefore allowed at the agreed per-vehicle amount, and the question of law was answered in favour of the assessee. Case-Laws Income Tax Tue, 08 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206845