https://www.taxtmi.com/caselaws?id=272776 A provision for warranty, when made on a scientific and actuarial basis with a direct nexus to the assessee's obligation, is an ascertained liability and allowable as a business deduction; the deletion of the disallowance was upheld. Proportionate interest on borrowed capital is not disallowable merely because funds were used in dealings involving group concerns where the borrowing was for business purposes, had RBI approval, and no material showed diversion for non-business use; the interest disallowance was therefore deleted. en-us Fri, 25 Sep 2009 00:00:00 +0530 Thu, 17 May 2018 14:59:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272776 A provision for warranty, when made on a scientific and actuarial basis with a direct nexus to the assessee's obligation, is an ascertained liability and allowable as a business deduction; the deletion of the disallowance was upheld. Proportionate interest on borrowed capital is not disallowable merely because funds were used in dealings involving group concerns where the borrowing was for business purposes, had RBI approval, and no material showed diversion for non-business use; the interest disallowance was therefore deleted. Case-Laws Income Tax Fri, 25 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272776