https://www.taxtmi.com/caselaws?id=755419 ITAT Delhi allowed the assessee's claim for warranty expense provision after the AO initially disallowed it for lack of scientific basis. The tribunal found that while no past history existed, the assessee's formula-based calculation was validated by actual subsequent expenses incurred during warranty periods. Following SC precedent in Rotork Controls India, the tribunal held that demonstrated defects and rectifications during warranty periods justify deduction under section 37. The matter was remanded to AO for verification of actual expenses incurred during unexpired warranty periods. en-us Mon, 10 Jun 2024 00:00:00 +0530 Fri, 12 Jul 2024 10:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755419 ITAT Delhi allowed the assessee's claim for warranty expense provision after the AO initially disallowed it for lack of scientific basis. The tribunal found that while no past history existed, the assessee's formula-based calculation was validated by actual subsequent expenses incurred during warranty periods. Following SC precedent in Rotork Controls India, the tribunal held that demonstrated defects and rectifications during warranty periods justify deduction under section 37. The matter was remanded to AO for verification of actual expenses incurred during unexpired warranty periods. Case-Laws Income Tax Mon, 10 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755419