https://www.taxtmi.com/caselaws?id=470036 Warranty obligations arising from sales may be treated as accrued business liabilities under the mercantile system when they are reasonably estimable. Historical claims data, systematic accounting records and scientific actuarial valuation can support an additional provision, even though claims are settled later; the provision is therefore presented as deductible when it reflects the relevant year's sales. Royalty deductions involving tax deducted at source are linked to the statutory year of payment or tax deduction, rather than automatically to the year of timely tax deposit. Accordingly, the notes state that the additional actuarially supported warranty provision is allowable, while the royalty deduction belongs to the earlier assessment year in which the liability accrued and tax was deducted. en-us Mon, 24 Jan 2011 00:00:00 +0530 Tue, 14 Jul 2026 14:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470036 Warranty obligations arising from sales may be treated as accrued business liabilities under the mercantile system when they are reasonably estimable. Historical claims data, systematic accounting records and scientific actuarial valuation can support an additional provision, even though claims are settled later; the provision is therefore presented as deductible when it reflects the relevant year's sales. Royalty deductions involving tax deducted at source are linked to the statutory year of payment or tax deduction, rather than automatically to the year of timely tax deposit. Accordingly, the notes state that the additional actuarially supported warranty provision is allowable, while the royalty deduction belongs to the earlier assessment year in which the liability accrued and tax was deducted. Case-Laws Income Tax Mon, 24 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470036