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 distribut

Please become a Premium member. If you are already a Premium member, login here to access the full content.