TaxTMI 
TaxTMI 
2010 (2) TMI 682
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....tion of this court : "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the validity of section 147/148 notice ?" 3. Tax Appeal Nos. 798, 799 and 800 of 2009 are filed by the Revenue for the assessment years 1996-97, 1997-98 and 1995-96, respectively. Questions proposed by the Revenue in all these three tax appeals are as under : Tax Appeal No. 798 of 2009 (assessment year 1996-97) "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the order of the Commissioner of Income-tax (Appeals) deleting the disallowance of Rs. 60,00,000 being provision in respect of warranty obligation, without appreciating th....
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....e, the assessee has filed tax appeal before this court challenging the said finding of the Tribunal. The Revenue has filed tax appeal for the assessment year 1995-96 challenging the decision of the Tribunal deleting the disallowance of Rs. 234 lakhs being provision in respect of warranty obligation on the merits. 6. Tax appeals for the assessment years 1996-97 and 1997-98 are filed by the Revenue involving identical issue which was involved in Tax Appeal No. 800 of 2009. So far as these two tax appeals are concerned, looking to the specific finding recorded by the learned Commissioner of Income-tax (Appeals) as well as the Tribunal to the effect that actual expenses incurred were more than the provision made by the assessee in its....
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....s in presenti and would not make any difference if the future date on which the liability shall have to be discharged is not certain. The Tribunal has further recorded the finding that the expenditure incurred by the assessee out of the provisions of this year as well as in the subsequent year, a major portion of the expenditure has been incurred by the assessee towards discharge of its liability for warranty. Even the figures were given for subsequent years. So far as the provision made for the assessment year 1995-96 is concerned, the Commissioner of Income-tax (Appeals) has categorically recorded the submissions made on behalf of the assessee which shows that the provision of Rs. 234 lakhs was actually inadequate as it was mostly utilize....
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....0,74,857 12,47,969 Total 3,30,74,857 96,74,857 10. Since the assessee has incurred the expenditure more than the provision made, the assessee's case would squarely fall within the ratio laid down by the apex court in the decision of the Bharat Earth Movers [2000] 245 ITR 428. Looking to these figures, it cannot be said that the provision made by the assessee is not capable of being estimated with reasonable certainty though the actual quantification was not possible. Some objection was raised by Mr. Bhatt for the Revenue that since these figures were not on record, the same should not be taken into consideration in second appeal. We are of the view that though the finding was recorded by the learned Commission....