https://www.taxtmi.com/caselaws?id=367583 The High Court overturned the Income Tax Appellate Tribunal's decision disallowing a provision for warranty as a deduction in the assessment year 2003-2004. The Court held that the provision, based on a scientific method and past experience, qualified as a liability for deduction. It criticized the Tribunal for lacking reasoning and failing to consider the scientific basis behind the provision. The Court reinstated the CIT(A) decision in favor of the Assessee, emphasizing the need for proper assessment of provisions and adherence to accounting principles. en-us Mon, 03 Sep 2018 00:00:00 +0530 Sat, 22 Sep 2018 08:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=367583 The High Court overturned the Income Tax Appellate Tribunal's decision disallowing a provision for warranty as a deduction in the assessment year 2003-2004. The Court held that the provision, based on a scientific method and past experience, qualified as a liability for deduction. It criticized the Tribunal for lacking reasoning and failing to consider the scientific basis behind the provision. The Court reinstated the CIT(A) decision in favor of the Assessee, emphasizing the need for proper assessment of provisions and adherence to accounting principles. Case-Laws Income Tax Mon, 03 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=367583