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TMI Blog2018 (9) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... with their findings on facts. In our opinion, issue raised by the Revenue is covered by the decision of the Hon’ble Supreme Court of India in the case of Rotork Controls India Pvt. Ltd. [2009 (5) TMI 16 - SUPREME COURT OF INDIA] and no substantial question of law arises in this appeal. - ITAT No. 43 of 2017 And GA No. 362 of 2017 - - - Dated:- 19-7-2018 - MR. ANIRUDDHA BOSE AND MRS. MOUSHUMI BHATTACHARYA, JJ. For The Appellant : MR. S. N. Dutta, Advocate For The Respondent : Mr. R. N. Bajoria, Sr. Adv. MR. A. K. Gupta, Mr. A. Mazumder, Advocates ORDER The Court :-Revenue has come up with this appeal for admission against the concurrent findings of the Commissioner of Income Tax Appeals and the Income Tax Appellate Tribunal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties applied the ratio of the decision of the Hon ble Supreme Court of India in the case of Rotork Controls India Pvt . Ltd . Vs. Commissioner of Income Tax, Chennai . reported in (2009) 13 SCC 283. In this decision, dealing with the question allowability of similar expenses the Hon ble Supreme Court of India observed and held :- 27 . In the present case we are concerned with product warranties . To give an example of product warranties, a company dealing in computers gives warranty for a period of 36 months from the date of supply . The said company considers the following options: ( a) account for warranty expense in the year in which it is incurred; ( b) it makes a provision for warranty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relationship between the nature of the sales, the warranty provisions made and the actual expenses incurred against it subsequently . Thus, the decision on the warranty provisions should be based on past experience of the company . 31 . A detailed assessment of the warranty provisioning policy is required particularly if the experience suggests that warranty provisions are generally reversed if they remained unutilised at the end of the period prescribed in the warranty . Therefore, the company should scrutinise the historical trend of warranty provisions made and the actual expenses incurred against it . On this basis a sensible estimate should be made . 32 . The warranty provision for the products should be ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, it involves outflow of resources and lastly it involves reliable estimation of obligation . Keeping in mind all the four aspects, we are of the view that the High Court should not have interfered with the decision of the Tribunal in the present case . Mr. Dutta , learned Counsel appearing for the Revenue has argued that such warranty expenses is not deductible being unascertained and liability. But the decision of the Hon ble Supreme Court of India in Rotork Controls India Pvt . Ltd . ( supra) examined the allowability of expenses of such nature only. Thus, we cannot accept the Revenue s submission that such expenditure goes outside purview of Section 37 of the Act. Next question, which was urged, was t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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