https://www.taxtmi.com/caselaws?id=468013 A reasonably estimated warranty provision, supported by past sales history and actual claim patterns, was deductible on accrual basis. Amounts earlier offered as income and later written off after licence expiry and policy change were allowable as a business loss or bad debt once the write-off was recorded in the books. The royalty-related tax provision was not disallowable, following the earlier view that the amount represented tax deducted at source on royalty. Service charges were excluded from profits derived from the industrial undertaking for section 80IB purposes, but only on a net basis after related expenses, requiring recomputation of the deduction. en-us Fri, 12 Aug 2011 00:00:00 +0530 Mon, 13 Apr 2026 15:18:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468013 A reasonably estimated warranty provision, supported by past sales history and actual claim patterns, was deductible on accrual basis. Amounts earlier offered as income and later written off after licence expiry and policy change were allowable as a business loss or bad debt once the write-off was recorded in the books. The royalty-related tax provision was not disallowable, following the earlier view that the amount represented tax deducted at source on royalty. Service charges were excluded from profits derived from the industrial undertaking for section 80IB purposes, but only on a net basis after related expenses, requiring recomputation of the deduction. Case-Laws Income Tax Fri, 12 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468013