https://www.taxtmi.com/caselaws?id=184416 A discounted premature repayment of sales tax deferral liability under an incentive scheme was treated as discharge of an agreed liability, not remission or cessation of trading liability under section 41(1), and not a taxable benefit in kind under section 28(iv). An estimated warranty provision based on past experience was recognised as deductible business expenditure under section 37(1) because it reflected a present obligation capable of reliable estimation. Interest on share application money pending allotment was also treated as allowable where the funds were used in business and commercial expediency was shown. The Tribunal therefore sustained relief on all substantive issues and no addition remained in the assessee's hands. en-us Fri, 05 Oct 2012 00:00:00 +0530 Tue, 23 Jan 2018 11:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184416 A discounted premature repayment of sales tax deferral liability under an incentive scheme was treated as discharge of an agreed liability, not remission or cessation of trading liability under section 41(1), and not a taxable benefit in kind under section 28(iv). An estimated warranty provision based on past experience was recognised as deductible business expenditure under section 37(1) because it reflected a present obligation capable of reliable estimation. Interest on share application money pending allotment was also treated as allowable where the funds were used in business and commercial expediency was shown. The Tribunal therefore sustained relief on all substantive issues and no addition remained in the assessee's hands. Case-Laws Income Tax Fri, 05 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184416