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2015 (5) TMI 869 - PUNJAB & HARYANA HIGH COURTDisallowance of warranty provision - whether ITAT was right in law in treating provision for warranty in the present case as an ascertained liability, despite failure on part of the assessee to establish historical or scientific basis of arriving at the said provision? - Held that:- The question is answered in favour of the respondent by the judgment of Commissioner of Income Tax v. Majestic Auto Ltd. [(7) TMI 568 - PUNJAB & HARYANA HIGH COURT] which was also relied upon by the Tribunal. So is the view taken in Calcutta Co. Ltd. v. CIT [1959 (5) TMI 3 - SUPREME Court] wherein held that the liability on the assessee having been imported, the liability would be an accrued liability and would not convert into a conditional one merely because the liability was to be discharged at a future date. There may be some difficulty in the estimation thereof but that would not convert the accrued liability into a conditional one; it was always open to the tax authorities concerned to arrive at a proper estimate of the liability having regard to all the circumstances of the case. Also see Rotork Controls India P. Ltd. v. Commissioner of Income Tax [ 2009 (5) TMI 16 - SUPREME COURT OF INDIA] 314 ITR 62 (SC)- Decided in favour of assesse.
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