https://www.taxtmi.com/caselaws?id=366376 The Supreme Court held that provisions for warranty expenses should be made based on past experience to adhere to accrual and matching concepts, prohibiting cash basis accounting. The Court emphasized the importance of a proper accounting system for estimating future warranty expenses and annual reassessment of estimates. The assessee's provisions were found to meet the conditions for recognizing a liability for provisioning purposes. The Court dismissed the Revenue's arguments on unascertained liabilities and arbitrary estimation, affirming the reliability of the assessee's estimates based on provided data. The appeal was dismissed as no substantial question of law arose, in line with the decision in Rotork Controls India Pvt. Ltd. en-us Thu, 19 Jul 2018 00:00:00 +0530 Mon, 03 Sep 2018 12:14:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=366376 The Supreme Court held that provisions for warranty expenses should be made based on past experience to adhere to accrual and matching concepts, prohibiting cash basis accounting. The Court emphasized the importance of a proper accounting system for estimating future warranty expenses and annual reassessment of estimates. The assessee's provisions were found to meet the conditions for recognizing a liability for provisioning purposes. The Court dismissed the Revenue's arguments on unascertained liabilities and arbitrary estimation, affirming the reliability of the assessee's estimates based on provided data. The appeal was dismissed as no substantial question of law arose, in line with the decision in Rotork Controls India Pvt. Ltd. Case-Laws Income Tax Thu, 19 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=366376