https://www.taxtmi.com/caselaws?id=259995 The High Court dismissed the appeals, upholding the respondent's treatment of warranty provisions as ascertained liabilities under the mercantile system of accounting. The court emphasized the provision's basis on past experience and legal precedents, rejecting the Income Tax Appellate Tribunal's disallowance and penalties imposed by the Assessing Officer. The judgments in Commissioner of Income Tax v. Majestic Auto Ltd. and Rotork Controls India P. Ltd. supported the court's decision that warranty provisions based on past experience should be considered accrued liabilities, not contingent ones. en-us Tue, 19 May 2015 00:00:00 +0530 Thu, 28 May 2015 06:34:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=259995 The High Court dismissed the appeals, upholding the respondent's treatment of warranty provisions as ascertained liabilities under the mercantile system of accounting. The court emphasized the provision's basis on past experience and legal precedents, rejecting the Income Tax Appellate Tribunal's disallowance and penalties imposed by the Assessing Officer. The judgments in Commissioner of Income Tax v. Majestic Auto Ltd. and Rotork Controls India P. Ltd. supported the court's decision that warranty provisions based on past experience should be considered accrued liabilities, not contingent ones. Case-Laws Income Tax Tue, 19 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=259995