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TMI Blog2015 (7) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... y R. Sudhakar, J.) The assessee has filed this appeal under Section 260A of the Income Tax Act, 1961 challenging the order of the Income Tax Appellate Tribunal, 'A' Bench, Chennai, dated 30.11.2007 made in I.T.A.No.983/ Mds/2006 for the assessment year 2002-2003, and the same was admitted on the following questions of law: (i)Whether the Tribunal is right in applying the ratio as laid do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udes preventive maintenance service, breakdown calls and provision for spares, as per the warranty clause. The said warranty clause is based on contractual obligation and is provided in the respective sales contract. 2.2. The assessee debited a sum of Rs. 1,53,01,497/- being the amount of unexpired warranties and claimed deduction. However, the Assessing Officer disallowed the claim of the unexpi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the decision of this Court in Commissioner of Income Tax v. Rotork Controls India Ltd. and others, (2007) 293 ITR 311 came to hold that since the warranty provision made as against the liability had not crystallized against the assessee, the plea of the assessee seeking deduction is unsustainable. Accordingly, the Tribunal set aside the order passed by the Commissioner of Income Tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods were being manufactured in the past and in the past if the facts established show that defects existed in some of the items manufactured and sold then the provision made for warranty in respect of the army of such sophisticated goods would be entitled to deduction from the gross receipts under section 37 of the 1961 Act." In the said decision, the Supreme Court also laid down certain conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ols India (P) Ltd., referred supra, the order of the Tribunal stands set aside and the matter is remanded to the Assessing Officer to pass appropriate orders in the light of the decision of the Supreme Court cited supra. 5. In the result, this appeal is allowed by way of remand to the Assessing Officer. In view of the remand order passed by this Court, the questions of law formulated need not ans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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