Excess provisions rightly excluded from income; CPC adjustments erroneous.

The ITAT held that the assessee correctly computed the disallowable amounts for excess provision for bad debts written back and excess warranty provision. Despite the assessee providing relevant details to the AO, the CPC erroneously made adjustments. Considering the actual warranty expenses incurred and customer-wise breakup of bad debts written back, primarily from reputed companies like Tata Motors Ltd. and Ashok Leyland Ltd., the ITAT found the assessee's claim justified. Consequently, the ITAT set aside the CIT(A)'s findings, deleted the disallowances u/s 37, and allowed the assessee's grounds. .....

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