ITAT allowed provisions of warranty claimed as expenditure

Demag Delaval Industries Turbomachinery Pvt. Ltd. Vs. ACIT (ITAT Mumbai) The assessee had made provision for warranty of Rs. 2,76,18,000/-which was claimed as expenditure. The same was denied by the Assessing Officer on the ground that it is an unascertained liability and a contingent liability. Learned CIT(A) in principal upheld the action of the Assessing Officer but directed that only the provision made during the year should be disallowed. Against this order assessee is in appeal before us. The learned counsel of the assessee submitted that issue is squarely covered by the decision of hono...