Tribunal held that, in terms of tripartite agreement entered into between assessee, a Russian company and Indian Air Force, assessee had to supply engines of aircrafts to Indian Air Force manufactured by Rusian company -warranty in respect of engines so supplied was responsibility of assessee for a specified period- Warranty expenses is held to be allowable .( AY.2006-07)
Indo Russian Aviation Ltd. v. ACIT (2018) 173 ITD 597/ 196 TTJ 656 (Pune)(Trib.)
S. 37(1) : Business expenditure-Warranty expenses-In terms of tripartite agreement entered into between assessee, a Russian company and Indian Air Force, assessee had to supply engines of aircrafts to Indian Air Force manufactured by Rusian company-warranty in respect of engines so supplied was responsibility of assessee for a specified period- Warranty expenses is held to be allowable.