Are provisions on account of warranty claims allowable under I T Act?


YES, as per Supreme Court. Provisions are generally not allowable under I.T.  Act as these are not actual expenditure. However, Supreme Court , based on the facts and circumstances  of the case in Rotork Controls India P. Ltd v. Commissioner of Income-tax [2009] 314 ITR 62 (SC) held that the provision is allowable as expenditure u/s…

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