ITAT Delhi Judgments — January 2018

The Tribunal held that while provisions for warranty expenses can be deductible if based on historical trends and scientific methodology, ad-hoc provisions are not allowable. The matter was remanded to the Assessing Officer to verify the methodology used by the assessee.

The Tribunal restored the issue of corporate expenses and royalty payments to the Assessing Officer for fresh adjudication, following its own previous orders in similar cases for the assessee. The levy of interest under Section 234C was directed to be computed on the returned income.