Provision for warranty - an assessee had a present obligation as ...

Assessee qualifies for deduction under warranty provision due to present obligation from past events and reliable estimate.

April 8, 2013

Case Laws Income Tax AT

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 the amount of obligation. - deduction allowed - AT

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Provision for warranty - an assessee had a present obligation as ...

Assessee qualifies for deduction under warranty provision due to present obligation from past events and reliable estimate.

April 8, 2013

Case Laws Income Tax AT

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Contingent liability - the warranty stood attached to the sale price of the product. It was held that warranty provisions had to be recognized because the assessee...

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...

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...

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...

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...

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...

Provision for warranty - assessee derived advantage by deferring its income to the extent of excess warranty provision to subsequent years. Therefore, such excess...

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

Claim of deduction u/s 80P(2)(d) - interest income received from Co-operative Bank - In the present case even though the assessee’s claim of deduction under section...

The case pertains to the disallowance of a provision for contract losses by the CIT(A) and AO, who erroneously concluded it as an unascertained liability not deductible...

The HC ruled in favor of the assessee regarding Asset Reconstruction Cost (ARC) provisioning, holding it qualified as a present obligation under AS 29 rather than a...

Disallowance of Provision for Warranty - Absence of scientific method adopted by the assessee - The assessee has submitted that the period of warranty is maximum for one...

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

ITAT rejected the assessee's claim for deduction under Section 80IA, determining that the appellant did not qualify as a "developer" or "contractor" for infrastructure...

Provision of warranty - accounting policy - the provisions of warranty made by the assessee company was on the basis of the scientific and consistent method - No...

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