https://www.taxtmi.com/caselaws?id=796174 Scientifically estimated warranty provisions based on historical trends are described as deductible trading expenditure under Section 37(1), where sale creates a present contractual obligation and expected costs are matched with recognised revenue. Withholding tax contractually borne by an assessee on a net-of-tax royalty payment is treated as part of the royalty consideration and allowable business expenditure. For in-house scientific research, Section 35(2AB) is described as requiring DSIR approval of the research facility, not certification of the expenditure amount; qualifying expenditure, excluding land or building costs, should therefore not be restricted to DSIR-quantified amounts. Consequential interest is stated to require recomputation. en-us Mon, 27 Jul 2026 00:00:00 +0530 Sat, 01 Aug 2026 08:34:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796174 Scientifically estimated warranty provisions based on historical trends are described as deductible trading expenditure under Section 37(1), where sale creates a present contractual obligation and expected costs are matched with recognised revenue. Withholding tax contractually borne by an assessee on a net-of-tax royalty payment is treated as part of the royalty consideration and allowable business expenditure. For in-house scientific research, Section 35(2AB) is described as requiring DSIR approval of the research facility, not certification of the expenditure amount; qualifying expenditure, excluding land or building costs, should therefore not be restricted to DSIR-quantified amounts. Consequential interest is stated to require recomputation. Case-Laws Income Tax Mon, 27 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796174