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TMI Blog2018 (9) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... has been framed for consideration. Assessee has failed to fulfill the three conditions pointed out by the Hon'ble Supreme Court in Rotork Controls India Private Limited (2009 (5) TMI 16 - SUPREME COURT OF INDIA) and there has been no material placed before the Assessing Officer to establish that the provision in the accounts for the warranty charges was based on any scientific basis or based on the past experience. Thus, the stand taken by the Assessee was wholly non-substantiated and consequently, the Tribunal rightly allowed the appeal filed by the Revenue and restored the findings of the Assessing Officer. X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal, which has been taken on appeal by the Revenue before the Income Tax Appeallate Tribunal (in short the Tribunal ). The appeal was allowed and the order passed by CIT-A was reversed and the order of the Assessing Officer was restored. 5. Learned counsel appearing for the Assessee submitted that the Tribunal was largely guided by the decision of this court in the case of CIT V. Rotork Controls India Private Limited and others (T.C.No.163 of 2003, etc. dated 05.02.2007) and allowed the appeal filed by the Revenue and in light of above decision of the Hon'ble Supreme Court of India in Rotork Controls India Private Limited V. CIT, (2009) 314 ITR 0062 (SC), the order passed by the Tribunal calls for interference. It is further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the previous experience as to how the provision has been created. The Assessing Officer found that the Assessee has deducted a sum of ₹ 17,15,000/- towards provision for warranty and he found that it was made as a provision towards an unascertained liability and therefore, proposed that it is not an admissible expenditure being contingent in nature. In the light of the said provisional conclusion, the Assessee submitted a letter dated 05.12.2000 stating that the provision created in the accounts for the possible costs that may be incurred have to be borne by the Assessee company for rectification of the bugs in the software supplied to the customer and also will have to be done free of charge to customers and it is claimed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court in Rotork Controls India Private Limited V. CIT, (2009) 314 ITR 0062 (SC), does not in any manner improve the case of the Assessee, as the Assessee has miserably failed to establish the three conditions laid down by the Hon'ble Supreme Court in the said decision recognising the liability. Unless and until the Assessee was able to satisfy that the provision has been made based on the historical trend, the question of extending the benefit of the decision of the Hon'ble Supreme Court in Rotork Controls India Private Limited (cited supra) does not arise. 11. Learned counsel for the Assessee produced an additional typed set of papers, which contained a note on provision for warranty, terms and conditions and provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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