Warranty Provisions Recognized as Contingent Liabilities Due to Current Obligations from Past Events, Allowing Deductions.

Contingent liability - the warranty stood attached to the sale price of the product. It was held that warranty provisions had to be recognized because the assessee therein had a present obligation as a result of past events resulting in an outflow of resources and a reliable estimate could be made of the amount of the obligation. - deduction allowed - HC .....

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