2013 (10) TMI 223

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....his appeal by the Revenue under section 260-A of the Income Tax Act, 1961 [for short 'the Act'] posing the 'following two substantial questions of law for answer reading as under:      "1. Whether the Tribunal was correct in holding that the assessee is entitled for deduction of a provision made towards warranty which is not made on any scientific basis and past ....

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....ty claims for earlier financial year, namely, 2001-02 in a sum of Rs. 85,65,546/- and the Assessing Officer noticed that even after reversing that amount provision of Rs. 74,56,682/- was an amount without any actual claim or expenditure. 3. The stand of the assessee was that the provision for warranty was made on the basis of estimating the same at 1.5% of the sales turnover of the year. From t....

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.... and on this aspect, the present appeal with the questions as indicated above. 6. Sri. K.V. Aravind, learned standing counsel appearing for the appellants - revenue submits that these questions are now covered by the Judgment of the Supreme Court in the case of Rotork Controls India (P.) Ltd v. Commissioner of income tax' reported in [2009] 314 ITR 62; that the Tribunal did not have the ben....

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....earing for the appellants - revenue has pointed out that the provision made for the year in question was, in fact, a sum of Rs. 1,60,62,016/- as is revealed in the assessment year, but the assessee itself having reversed from out of this upto the extent of Rs. 85,65,546/- and having included that in the total income of the year in question, the authorities were required to consider the claim for p....