https://www.taxtmi.com/caselaws?id=13554 The court ruled that the warranty provision, being a contingent liability, is not deductible. It emphasized that for a liability to be deductible, it must be certain and not contingent. The court also remanded the issue of disallowance under section 40A(2)(b)(iv) to the assessing authority for fresh consideration, requiring the assessee to provide detailed justification for the additional service charges paid. The appeals by the Revenue regarding the warranty charges as a contingent liability were allowed, and the Tribunal's decision was reversed. en-us Mon, 05 Feb 2007 00:00:00 +0530 Sat, 03 Feb 2024 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13554 The court ruled that the warranty provision, being a contingent liability, is not deductible. It emphasized that for a liability to be deductible, it must be certain and not contingent. The court also remanded the issue of disallowance under section 40A(2)(b)(iv) to the assessing authority for fresh consideration, requiring the assessee to provide detailed justification for the additional service charges paid. The appeals by the Revenue regarding the warranty charges as a contingent liability were allowed, and the Tribunal's decision was reversed. Case-Laws Income Tax Mon, 05 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13554