Held that short fall in inventory written off is allowable as deduction. Purchase of tools allowable as revenue expenditure.Provision for warranty is allowable as deduction. As regards liability for erection and commissioning placed upon shoulders of assessee. The provision at rate of one per cent. to three per cent. determined on basis of past experience. Matter remanded to the Assessing Officer. (AY. 2010-11 to 2014-15)
Bharat Fritz Wermer Ltd v. Dy.CIT (2022) 95 ITR 507 (Bang) (Trib)
S .37(1) : Business expenditure-Short fall in inventory written off-Allowable as deduction-Purchase of tools allowable as revenue expenditure-Provision for warranty-Allowable as deduction-Lability for erection and commissioning placed upon shoulders of assessee-Provision at rate of one per cent. to three per cent. determined on basis of past experience-Matter remanded to the Assessing Officer. [S. 28(1)]