Provision for warranty on the basis of technical estimation is a provision for ascertained liability hence allowable as deduction. Followed, Rotork Controls India (P.) Ltd. (2009) 314 ITR 62 (SC). (AY. 2011-12)
GKN Driveline (India) Ltd. v. DCIT (2018) 62 ITR 784 (Delhi)(Trib.)
S. 37(1) : Business expenditure–Provision for warranty claims is allowable expenditure.