https://www.taxtmi.com/caselaws?id=221980 The Appellate Tribunal allowed the appeal of the assessee company regarding the disallowance of a provision for warranty for the assessment year 2007-08. The Tribunal held that warranty provisions should be recognized as an allowable deduction under section 37 of the Income Tax Act, following a Supreme Court decision. The Tribunal found that the provision for warranty was based on past experience and scientific methods, constituting a present obligation allowing for a reliable estimate of the liability amount. As such, the Tribunal allowed the claim for the provision of warranty, setting aside the lower authorities' decisions and allowing the assessee's appeal in full. en-us Wed, 13 Feb 2013 00:00:00 +0530 Mon, 08 Apr 2013 18:21:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221980 The Appellate Tribunal allowed the appeal of the assessee company regarding the disallowance of a provision for warranty for the assessment year 2007-08. The Tribunal held that warranty provisions should be recognized as an allowable deduction under section 37 of the Income Tax Act, following a Supreme Court decision. The Tribunal found that the provision for warranty was based on past experience and scientific methods, constituting a present obligation allowing for a reliable estimate of the liability amount. As such, the Tribunal allowed the claim for the provision of warranty, setting aside the lower authorities' decisions and allowing the assessee's appeal in full. Case-Laws Income Tax Wed, 13 Feb 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221980