Warranty Provision Allowed Despite Large Opening Balance: ITAT Delhi

Marelli Um Electronic Systems Private Limited Vs DCIT (ITAT Delhi)

Warranty Provision Is Allowable Business Expenditure: ITAT Deletes Disallowance Despite Large Opening Balance

Delhi ITAT allowed the Assessee’s appeal and deleted the disallowance of ₹32.75 lakh made towards provision for warranty. The Tribunal held that warranty provision, when created on the basis of consistent accounting policy, past experience and historical trend, constitu

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