https://www.taxtmi.com/caselaws?id=10672 HC held that a provision for future warranty expenses arising from a contractual warranty clause is not a contingent liability but an accrued business liability for the accounting year. Although actual payment may be deferred, where accounts are maintained on the mercantile system the liability is sufficiently definite and, consistent with commercial and accounting principles, is allowable as a deduction under section 37 when computing business profits. en-us Thu, 05 May 2005 00:00:00 +0530 Mon, 22 Sep 2025 11:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10672 HC held that a provision for future warranty expenses arising from a contractual warranty clause is not a contingent liability but an accrued business liability for the accounting year. Although actual payment may be deferred, where accounts are maintained on the mercantile system the liability is sufficiently definite and, consistent with commercial and accounting principles, is allowable as a deduction under section 37 when computing business profits. Case-Laws Income Tax Thu, 05 May 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10672