Provision for warranty based on Turnover is allowable

Grundfos Pumpas India Ltd. Vs DCIT (Madras High Court) The appellate authority, after considering the submissions made by the Assessee as well as the detailed note submitted by the Assessee, held that the provision has been made by the Assessee on a scientific basis and it is an ascertained liability.  Examining the nature of business done by the Assessee, the CIT(A) pointed out that the Assessee is engaged in the business of manufacturing, assembling and marketing of pumps and components and they have explained the basis for working the said provision for warranty, which is based on past exp...