Nature of Expenses - Provision for warranty is rightly made by ...

Assessee's Warranty Expense Provision Justified: Present Obligation from Past Events Allows Reliable Estimate for Validity.

March 20, 2014

Case Laws Income Tax HC

Nature of Expenses - Provision for warranty is rightly made by the assessee because it has incurred a present obligation as a result of past events - A reliable estimate of the obligation is possible - HC

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Nature of Expenses - Provision for warranty is rightly made by ...

Assessee's Warranty Expense Provision Justified: Present Obligation from Past Events Allows Reliable Estimate for Validity.

March 20, 2014

Case Laws Income Tax HC

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Provision for warranty expenses computed on basis of past experience and scientific basis is allowable. Assessee applied formula for provision though no past history was...

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Provision for warranty - an assessee had a present obligation as a result of past events resulting in an outflow of resources and a reliable estimate could be made of...

Business expenses claimed under the head of “Provision for Warranty Expenses” - addition u/s 37 - Assessee company has not committed any error in making provisions...

Disallowance being provision made for warranty expenses - The assessee’s warranty provision equally lack in the proper accounting / calculating factors and, therefore,...

Provision for warranty - Assessee has explained the basis for working of the provision for warranty based on past experience and it is not on adhoc basis - Claim of...

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...

Disallowance for warranty expenses - assessee is entitled to change the method of accounting with respect to claim of warranty expenses from ‘actual basis’ to ‘provision...

Provision for Warranty - The assessee had not proved the provision of warranty expenses based on any scientific method in such circumstances - Triple test was not passed...

Disallowance of provision of warranty - The provision made by the assessee was ascertained based on the actual expenses incurred on settlement of warranty schemes in...

Disallowance of claim of Provision for expenses - unascertained liability or not - By belated receipt of bills, the payment only gets postponed, but not the liability...

Additional provision for warranty Claim - Tribunal allowed normal warranty, extended warranty, however denied additional provision for warranty on domestic sales claimed...

Liquidated damages provision was disallowed as it was based on unascertained liability without probability of outflow of resources. ITAT deleted addition, holding...

Provision for warranty - Tribunal has examined the relevant clause in the terms and conditions and found that the warranty clause is in-built in the guarantee clause...

Deductible expenses u/s 37 - provisions for warranty claims - The Tribunal upheld the practice of making provisions for warranty based on a reasonable estimation method...

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