Warranty expense provision based on past experience & trend is allowable expense

Brief of the Case Calcutta High Court held In the case of The CIT vs. M/s Carrier Air-Conditioning and Refrigeration that provision for warranty based on personal experience and past trends is an allowable expenditure. The division bench judgment in the case of Commissioner of Income Tax v. Majestic Auto Ltd. [2006] 156 Taxman 460 (P&H) and supreme court judgment in the case of Rotork Controls India P. Ltd. v. Commissioner of Income Tax [2009] 314 ITR 62 (SC), squarely covers the current case. Facts of the Case The assessee had debited an amount of Rs. 2,66,33,000/- on account of warranty ...