https://www.taxtmi.com/caselaws?id=375004 The Tribunal upheld the Assessing Officer's decision to allow only 15% depreciation on Research & Development (R&D) capital expenditure due to lack of evidence of actual R&D activity. Warranty expenses were disallowed as the provision was not based on scientific calculations. The Tribunal emphasized that only actual repair expenditures should qualify for deduction. It clarified that warranty provisions must be made scientifically and historical trends considered. The appellant's appeal under section 14A of the Act was dismissed. The judgment underscores the importance of supporting expenditure claims with evidence and following proper accounting practices for tax deductions. en-us Wed, 06 Feb 2019 00:00:00 +0530 Wed, 13 Feb 2019 06:09:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=375004 The Tribunal upheld the Assessing Officer's decision to allow only 15% depreciation on Research & Development (R&D) capital expenditure due to lack of evidence of actual R&D activity. Warranty expenses were disallowed as the provision was not based on scientific calculations. The Tribunal emphasized that only actual repair expenditures should qualify for deduction. It clarified that warranty provisions must be made scientifically and historical trends considered. The appellant's appeal under section 14A of the Act was dismissed. The judgment underscores the importance of supporting expenditure claims with evidence and following proper accounting practices for tax deductions. Case-Laws Income Tax Wed, 06 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=375004