ITAT Ahmedabad allows warranty claim based on a scientifically validated method

Rotomag Motors And Controls Private Limited Vs ACIT (ITAT Ahmedabad)

In a recent judgment, the Income Tax Appellate Tribunal (ITAT) Ahmedabad bench allowed a warranty provision claim by Rotomag Motors and Controls Private Limited, overturning the disallowance upheld by the Commissioner of Income Tax (Appeals) – National Faceless Appeal Centre, Delhi. The case centers around a disallowance of ₹1,14,19,990 on warranty provision expenses made by the Assessing Officer (AO) under section 143(3) of the Income Tax Act, 1961.

Case Background

Rotomag Motors, a manufact

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