https://www.taxtmi.com/caselaws?id=459210 Rajasthan HC ruled in favor of the assessee on two issues. First, regarding disallowance of contractual obligation provision, the court held that provisions meeting three conditions - present obligation from past event, probable resource outflow, and reliable estimation - are deductible under section 37. Following Rotork Controls India P. Ltd. precedent, warranty provisions for sophisticated goods with historical defect trends were allowed. Second, on provident fund contribution disallowance, the court applied M/s Instrumentation Limited precedent, holding that both employer and employee PF contributions paid before return filing due date cannot be disallowed under sections 43B and 36(1)(va). en-us Tue, 12 Sep 2017 00:00:00 +0530 Thu, 05 Dec 2024 08:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459210 Rajasthan HC ruled in favor of the assessee on two issues. First, regarding disallowance of contractual obligation provision, the court held that provisions meeting three conditions - present obligation from past event, probable resource outflow, and reliable estimation - are deductible under section 37. Following Rotork Controls India P. Ltd. precedent, warranty provisions for sophisticated goods with historical defect trends were allowed. Second, on provident fund contribution disallowance, the court applied M/s Instrumentation Limited precedent, holding that both employer and employee PF contributions paid before return filing due date cannot be disallowed under sections 43B and 36(1)(va). Case-Laws Income Tax Tue, 12 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459210