Commissioner of Inland Revenue v. Mitsubishi Motors, New Zealand

PR. COMMISSIONER OF INCOME TAX -7, DELHI vs. SONY INDIA PVT. LTD.

Appeal is dismissed

…Court in Commissioner of Income Tax Vs. Vinitec Corpn (P.) Ltd, 278 ITR 337. This Court has relied upon the decision of the Supreme Court in Bharat Earth Movers Vs. CIT, 245 ITR 428 and Commissioner of Inland Revenue v. Mitsubishi Motors New Zealand Ltd., 222 ITR 697 held that the liability arising out of a warranty is an allowable deduction even when the amount payable by the assessee is quantified and discharged in future. The following passage from the above decision is in this regard apposite: “The ratio decidendi of the above cases is squarely applicable to the facts of the present case. It is not…

SONY INDIA PVT. LTD.,NEW DELHI vs. NATIOANAL E- ASSESMENT CENTRE, NEW DELHI

In the result, the appeal of the assessee in ITA No

Bench: Shri Chandra Mohan Garg & Shri N.K. Billaiya

…e light of a Division Bench of this Court in CIT v. Vinitec Corpn (P.) Ltd [2005] 278 ITR 337 '. This Court has relied upon the decision of the Supreme Court in Bharat Earth Movers v. C/7[2000] 245 1 PR 428 and IRC v. Mitsubishi Motors New Zealand Ltd. [1996] 222 ITR 697 (PC) held that the liability arising out of a warranty is an allowable deduction even when the amount payable by the assessee is quantified and discharged in future. The following passage from the above decision is in this regard apposite: ”14. The ratio decidendi of the above cases is squarely applicable to the facts of the present case. It is…

COMMISSIONER OF INCOME TAX vs. HEWLETT PACKARD (INDIA) LTD

The appeal is dismissed

…ill be discharged at a future date. It does not make any difference if the future date on which the liability shall have to be discharged is not certain." 13. Reference was also made to Commissioner of Inland Revenue v. Mitsubishi Motors, New Zealand, [1996] 222 ITR 697 (PC). Relying upon these two decisions and the facts noted above as well as the fact that the Assessee follows the mercantile system of accounting, the Tribunal held that the provision for warrantee claims was justified and is entitled to a deduction. (4) W  - 14. On the issue of the basis of estimating the liability…

COMMISSIONER OF INCOME TAX vs. HEWLETT PACKARD (INDIA) LTD

The appeal is dismissed

…ill be discharged at a future date. It does not make any difference if the future date on which the liability shall have to be discharged is not certain." 13. Reference was also made to Commissioner of Inland Revenue v. Mitsubishi Motors, New Zealand, [1996] 222 ITR 697 (PC). Relying upon these two decisions and the facts noted above as well as the fact that the Assessee follows the mercantile system of accounting, the Tribunal held that the provision for warrantee claims was justified and is entitled to a deduction. 30 Ŕ.  - On the issue of the basis of estimating the liability, t…