https://www.taxtmi.com/caselaws?id=210048 The High Court upheld the Tribunal's decision that the provision for warranty was allowable as expenditure. The Court relied on the Apex Court's judgment in Rotork Controls' India case, emphasizing the conditions for recognizing a provision. It found that the warranty provision met all criteria, including a present obligation, probable outflow of resources, and a reliable estimate of the obligation amount. As a result, the Court dismissed the appeal, concluding that no substantial question of law arose regarding the allowability of the warranty provision as expenditure. en-us Mon, 18 Jul 2011 00:00:00 +0530 Fri, 28 Jun 2013 18:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=210048 The High Court upheld the Tribunal's decision that the provision for warranty was allowable as expenditure. The Court relied on the Apex Court's judgment in Rotork Controls' India case, emphasizing the conditions for recognizing a provision. It found that the warranty provision met all criteria, including a present obligation, probable outflow of resources, and a reliable estimate of the obligation amount. As a result, the Court dismissed the appeal, concluding that no substantial question of law arose regarding the allowability of the warranty provision as expenditure. Case-Laws Income Tax Mon, 18 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=210048