https://www.taxtmi.com/caselaws?id=368450 The Tribunal upheld the decision of the AO and CIT(A) to restrict the provision for warranty to 2.14% of sales, dismissing the appeals for both assessment years 2013-14 and 2014-15. The methodology used by the assessee for computing the provision was deemed unreliable and not in line with the Supreme Court's guidelines and Accounting Standard 29. The Tribunal highlighted the disproportionate increase in the provision compared to turnover, lack of reassessment system, and absence of provision reversal. The appeals were therefore dismissed, emphasizing that excess warranty provision cannot be allowed as a deduction. en-us Fri, 03 Aug 2018 00:00:00 +0530 Tue, 09 Oct 2018 06:43:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=368450 The Tribunal upheld the decision of the AO and CIT(A) to restrict the provision for warranty to 2.14% of sales, dismissing the appeals for both assessment years 2013-14 and 2014-15. The methodology used by the assessee for computing the provision was deemed unreliable and not in line with the Supreme Court's guidelines and Accounting Standard 29. The Tribunal highlighted the disproportionate increase in the provision compared to turnover, lack of reassessment system, and absence of provision reversal. The appeals were therefore dismissed, emphasizing that excess warranty provision cannot be allowed as a deduction. Case-Laws Income Tax Fri, 03 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=368450