Deduction of not contingent warrant expenses allowable from book profit

Lenovo India Pvt. Ltd. Vs ITO (ITAT Bangalore) Conclusion: Provision for warrant expenses was not contingent and had to be allowed as deduction while computing income under the head Income from Business & Profession. Thus, the addition made to the book profits under section 115JB was to be deleted because the liability could not be said to be contingent. Held: Assessee was a renowned company Lenovo engaged in the business of manufacturing and distribution of desktop, laptop, servers and smartphones. It sold products and as per the terms of sale, assessee provided warranty for performance, ...