As a part of contractual obligation, assessee provided warranty for replacement of spare parts, maintenance, after sales service and 0.5 per cent on sale for liabilities. Provision of after sales service was reverted back by company on expiry of guarantee/warranty period and amount of such expenditure was offered to tax. Allowable as deduction.  liquidated damages provided in accounts were based on actual deduction allowed by assessee to its customers as a part of contract which was being followed by assessee consistently and were ascertained expenditure, assessee-company had not committed any error in making provision of liquidated damages.  Assessee’s accounting policy was that losses of non-moving inventories due to cancellation of orders, change in technology, non-receipt of fresh order, etc., was charged to profit and loss account. Order of Tribunal is affirmed. Sales promotion expense also include expenditure on account of after sales service, assessee was correct in charging same under head Sales promotion.(AY. 2012-13)