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Warranty expense provision based on past experience & trend is allowable expense
Case Law Details
- Case Name
- The CIT vs. M/s Carrier Air-Conditioning and Refrigeration (Formerly known as Aircon Limited) (Punjab & Haryana High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Punjab and Haryana HC
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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 acc...
