Dismissing the appeal the Tribunal held that it clearly established that assessee had not been strict in making the provision for warranty at the end of the financial year under consideration. The assessee’s warranty provision equally lacked proper accounting/calculating factors and, therefore, the claim of the assessee was not sustainable. Order of CIT(A) is affirmed. (AY.2012-13)
Senior India P. Ltd. v. Dy.CIT (2021) 87 ITR 62 (SN) (Delhi)(Trib.)
S. 37(1) : Business expenditure-Provision for warranty claims-Estimate of provision on basis of past historical trend of warranty claims not reliable-Provision not allowable. [S. 145]