https://www.taxtmi.com/caselaws?id=33420 The SC allowed the appellant-company's claim for warranty provision of Rs. 5,18,554/- for AY 1991-92. The company sold valve actuators primarily to BHEL with standard warranties covering defective parts replacement within specified periods. The Court held that provisions made based on estimated present value of contingent warranty liability were allowable deductions during the relevant assessment years, recognizing the legitimate business practice of accounting for future warranty obligations. en-us Tue, 12 May 2009 00:00:00 +0530 Fri, 04 Apr 2025 16:16:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33420 The SC allowed the appellant-company's claim for warranty provision of Rs. 5,18,554/- for AY 1991-92. The company sold valve actuators primarily to BHEL with standard warranties covering defective parts replacement within specified periods. The Court held that provisions made based on estimated present value of contingent warranty liability were allowable deductions during the relevant assessment years, recognizing the legitimate business practice of accounting for future warranty obligations. Case-Laws Income Tax Tue, 12 May 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33420