Case Law Details
Case Name : Rotork Controls vs. CIT (Supreme Court)
Related Assessment Year :
Courts :
Supreme Court of India
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Supreme Court in the case of Rotork Controls vs. CIT (Supreme Court) held that Estimated expenditure towards warranty is allowable u/s 37 (1).
The assessee sold valve actuators. At the time of sale, the assessee provided standard warranty that if the product was defective within the stated period, the product would be rectified or replaced free of charge. For AY 1991-92, the assessee made a provision for warranty at Rs.10,18,800 at the rate of 1.5% of the turnover. As the actual expenditure was only Rs.
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