Provision for Warranty Expenses allowed as business expense u/s 37

PCIT Vs Heavy Engineering Corporation Limited (Jharkhand High Court) Jharkhand High Court held that ‘Provision for Warranty Expenses’ is allowable as business expense as large number of sophisticated goods were manufactured in past and if facts established show that defects existing in some of items manufactured and sold then provision for warranty is entitled to deduction. Facts- The respondent Assessee is a government of India undertaking. On 28.09.2012 Assessee filed its return declaring total income to be “NIL”. Return was processed u/s. 143(1). On 26.08.2013, case of the Assessee ...