9911796707
TMI Blog2012 (12) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions. - Decision in CIT vs. Vinitec Corporation Pvt. Ltd.[2005 (5) TMI 54 - DELHI HIGH COURT] followed - In the result, department’s appeal is dismissed. - I.T.A.No.1791/Del/2012 - - - Dated:- 2-11-2012 - SHRI B.R. MITTAL, AND SHRI B.R. JAIN, JJ. Appellant by: Shri Deepak Sehgal, Sr. DR. Respondent by: Ms. Sayaree Basu Malik, Advocate. ORDER PER B.R. MITTAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een made on any scientific basis ensuring a fair degree of accuracy, thereby resulting in huge deferment of revenue and tax liability thereon? 2. The relevant facts are that the assessee company is engaged in the business of manufacturing/trading/assembling of telecom power equipments and UPS. The assessee has claimed deduction of Rs.40,74,428/- on account of provision for warranty in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total sales and service income is reduced by the amount of consumption of goods purchased from the related parties. 1% of the above amount is calculated. From the above amount the opening balance of the warranty provision is reduced to arrive at the warranty provision for the year. Excess provision, if any, for the year is reversed. The actual expenses on warranty are directly ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied on the order of the learned CIT(A). 6. We have carefully considered the orders of the authorities below and the submissions of the learned representatives of the parties. Hon ble Delhi High Court in the case of CIT vs. Vinitec Corporation Pvt. Ltd. (2005) 278 ITR 337, has held that provisions for warranty charges is not a contingent liability and is deductible in computation of taxable inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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