Provision for warranty expenses

 Provision for warranty expenses 

Provision for warranty expenses provided by the assessee in the books of accounts is on the basis of past history and further, such provision has been made on scientific basis is allowable expenditure as per the decision of the Hon’ble Supreme Court in the case of Rotork Controls India (P) Ltd., wherein, it was held that provision for warranty expenses is ascertained liability and hence, allowable as business expenditure. (ITAT Chennai, ITA No.1340/Chny/2019.

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