2012 (12) TMI 253

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....sp; Respondent by: Ms. Sayaree Basu Malik, Advocate. ORDER PER B.R. MITTAL, JUDICIAL MEMBER The department has filed this appeal for the assessment year 2007-08 against order of the learned Commissioner of Income-tax (Appeals) dated 13th December, 2011 on the following grounds:- "1. Whether, on the facts and in the circumstances of the case, the Ld. CIT(A) was right in law in deleting the di....

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....as claimed deduction of Rs.40,74,428/- on account of provision for warranty in respect of after-sale warranties to be provided by the assessee to its customers on products sold during the year under consideration.  The warranty provision amount was calculated at 1% of the net amount of sales and service income for the year under consideration.  The Assessing Officer considering the writt....

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....he year.  Excess provision, if any, for the year is reversed. * The actual expenses on warranty are directly charged to the Profit & Loss account and hence the same does not impact the above calculation. The learned CIT(A) considered the assessment order, submissions of the learned AR of the assessee and case laws on the matter.  Finding that the issue is squarely covered in favour of ....