https://www.taxtmi.com/caselaws?id=787801 A warranty provision created for products sold in the year, computed from past experience using a reasonable scientific method, constitutes a present obligation arising from past events and is capable of reasonable estimation; therefore such a provision is an ascertained liability and does not qualify as an amount "set aside as provision for liabilities" under Explanation 1(c) to section 115JB. Operatively, the warranty provision need not be added back in computing book profit under section 115JB, resulting in acceptance of the assessee's position and rejection of the Revenue's challenge on this issue. en-us Mon, 09 Mar 2026 00:00:00 +0530 Tue, 10 Mar 2026 17:45:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787801 A warranty provision created for products sold in the year, computed from past experience using a reasonable scientific method, constitutes a present obligation arising from past events and is capable of reasonable estimation; therefore such a provision is an ascertained liability and does not qualify as an amount "set aside as provision for liabilities" under Explanation 1(c) to section 115JB. Operatively, the warranty provision need not be added back in computing book profit under section 115JB, resulting in acceptance of the assessee's position and rejection of the Revenue's challenge on this issue. Case-Laws Income Tax Mon, 09 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787801