https://www.taxtmi.com/caselaws?id=310921 ITAT Ranchi allowed assessee's warranty expense provisions that were disallowed by AO. AO held expenses were not ascertained and adhoc in nature. ITAT applied Bharat Earthmovers SC criteria: business liability arose in accounting year with certainty, could be reasonably estimated at 0.5% of sales based on past expenses and technical estimates, and unused provisions were offered as income upon warranty expiration. ITAT found all criteria satisfied despite future quantification requirement. Appeal decided against revenue. en-us Fri, 15 Mar 2019 00:00:00 +0530 Sat, 25 Nov 2023 14:00:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310921 ITAT Ranchi allowed assessee's warranty expense provisions that were disallowed by AO. AO held expenses were not ascertained and adhoc in nature. ITAT applied Bharat Earthmovers SC criteria: business liability arose in accounting year with certainty, could be reasonably estimated at 0.5% of sales based on past expenses and technical estimates, and unused provisions were offered as income upon warranty expiration. ITAT found all criteria satisfied despite future quantification requirement. Appeal decided against revenue. Case-Laws Income Tax Fri, 15 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310921