https://www.taxtmi.com/caselaws?id=215586 The Tribunal allowed the appeal, permitting the provision for warranty claim under the mercantile accounting system. The Tribunal disagreed with the AO and CIT(A), stating the liability arises at the time of sale, even if expenses occur later. Detailed information and contracts provided by the assessee justified the claim. The consistent practice of making a 2% claim on sales was deemed acceptable, with adjustments based on actual expenses in subsequent years. The Tribunal set aside the CIT(A)'s decision and upheld the claim. en-us Wed, 13 Jun 2012 00:00:00 +0530 Thu, 09 Aug 2012 14:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215586 The Tribunal allowed the appeal, permitting the provision for warranty claim under the mercantile accounting system. The Tribunal disagreed with the AO and CIT(A), stating the liability arises at the time of sale, even if expenses occur later. Detailed information and contracts provided by the assessee justified the claim. The consistent practice of making a 2% claim on sales was deemed acceptable, with adjustments based on actual expenses in subsequent years. The Tribunal set aside the CIT(A)'s decision and upheld the claim. Case-Laws Income Tax Wed, 13 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215586