Deduction u/s 37(1) of liability arising for warranty ::

Court :
HC

Brief :
Held by the Hon`ble Court that as the amounts set apart by the assessee for different A.Y. are done on the basis of past experience even though the liability is to be quantified and discharged in future, the provision made for the liability against warranty is deductible under section 37(1).

Citation :
C.I.T. Vs. Sony India (P) Ltd.

Deduction u/s 37(1) of liability arising for warranty C.I.T. Vs. Sony India (P) Ltd. 04/17/2006 [2007] 160 TAXMAN 397 (DELHI) Case Fact: Whether liability against warranty is a deductible allowance under section 37(1)? Decision: Held by the Hon`ble Court that as the amounts set apart by the assessee for different A.Y. are done on the basis of past experience even though the liability is to be quantified and discharged in future, the provision made for the liability against warranty is deductible under section 37(1).

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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