https://www.taxtmi.com/caselaws?id=57822 A provision for warranty claims based on past experience and scientific estimation was treated as an accrued liability arising from sales, so it was deductible in the year of sale. Purchase of application software was held to be revenue expenditure because it merely facilitated business operations and did not create a separate capital asset. Receipts for transfer of personnel and sharing of customer database were held to be revenue receipts chargeable to tax, as they arose from business operations without impairing the trading structure. A provision for bad and doubtful debts could not be added back under section 115JA because it reflected diminution in asset value, not an unascertained liability. Interest under section 234B was not leviable on tax computed under section 115JA, and foreign tax credit was allowable even if not claimed earlier. en-us Thu, 02 Mar 2006 00:00:00 +0530 Wed, 27 Mar 2024 11:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57822 A provision for warranty claims based on past experience and scientific estimation was treated as an accrued liability arising from sales, so it was deductible in the year of sale. Purchase of application software was held to be revenue expenditure because it merely facilitated business operations and did not create a separate capital asset. Receipts for transfer of personnel and sharing of customer database were held to be revenue receipts chargeable to tax, as they arose from business operations without impairing the trading structure. A provision for bad and doubtful debts could not be added back under section 115JA because it reflected diminution in asset value, not an unascertained liability. Interest under section 234B was not leviable on tax computed under section 115JA, and foreign tax credit was allowable even if not claimed earlier. Case-Laws Income Tax Thu, 02 Mar 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57822