Indian Oil Tanking Ltd. v. ITO

ACIT 3(1)(2), MUMBAI vs. GRAN ELECTRONICS P.LTD, MUMBAI

Bench: Shri Joginder Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.3518/Mum/2017 (नििाारण वर्ा / Assessment Year : 2011-12) बिाम/ Acit 3(1)(2) M/S. Gran Electronics R.No 607, 6Th Floor, Pvt. Ltd., Aayakar Bhavan, C-171, Mittal Court, V. Mumbai-400020 Nariman Point, Mumbai-400021 स्थायी ऱेखा सं./ Pan: Aaach0383A (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri. Chaudhary Arun Kumar Singh Assessee By : Shri. Mayank Chauhan & Shri. Bhupendra Karkhanis सुनवाई की तारीख /Date Of Hearing : 10.10.2018 घोषणा की तारीख /Date Of Pronouncement :22.10.2018 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Revenue, Being Ita No. 3518/Mum/2017, Is Directed Against Appellate Order Dated 27.01.2017 Passed By Learned Commissioner Of Income Tax (Appeals)-8, Mumbai (Hereinafter Called “The Cit(A)”), For Assessment Year 2011-12, The Appellate Proceedings Had Arisen Before Learned Cit(A) From Assessment Order Dated 10.03.2014 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Called “The Act”) For Ay 2011-12. I.T.A. No.3518/Mum/2017

…TTJ 865 (Del) Wherein it was held that no addition can be made to the book profits u/s. 115JB of the Act in the case of provision for warranty expenses as the same constitute an ascertained liability. f) Indian Oil tanking Ltd, v. ITO, 10(3)(3), Mumbai [2009] 120 ITD 237. Wherein it was held that A.O. could not make addition of provision of performance warranties to net profit of assessee for arriving at its book profit for the purpose of section 115JB. g) Hero Briggs & Stratton Auto Ltd. v. CIT 161 Taxman 127 (Delhi) Wherein it has been held that once assessee is maintaining his account on mercantile system and…

DCIT CIR 3(3), MUMBAI vs. KAIL LTD, MUMBAI

In the result, appeals of the Revenue are partly allowed for statistical purposes

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunathan, Hon'Ble

…Taxmann 386] the Hon'ble Punjab and Haryana High Court held that provision of warranty for repairs/replacement is an existing liability at time of sale and is allowable as deduction. Mumbai Bench of the Tribunal in the case of Indian Oil Tanking Ltd. v. ITO [120 ITD 237] held that Assessing Officer cannot make addition of provision of performance warranties to net profit of assessee for arriving at its book profit u/s 115JB. Considering all these decisions and the facts of this case the Ld.CIT(A) allowed the claim of the assessee which in our view is right. Therefore, respectfully following the said decision of…

DCIT CIR 3(3), MUMBAI vs. KALI LTD, MUMBAI

In the result, appeals of the Revenue are partly allowed for statistical purposes

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunathan, Hon'Ble

…Taxmann 386] the Hon'ble Punjab and Haryana High Court held that provision of warranty for repairs/replacement is an existing liability at time of sale and is allowable as deduction. Mumbai Bench of the Tribunal in the case of Indian Oil Tanking Ltd. v. ITO [120 ITD 237] held that Assessing Officer cannot make addition of provision of performance warranties to net profit of assessee for arriving at its book profit u/s 115JB. Considering all these decisions and the facts of this case the Ld.CIT(A) allowed the claim of the assessee which in our view is right. Therefore, respectfully following the said decision of…

DCIT CIR 3(3), MUMBAI vs. KALI LTD, MUMBAI

In the result, appeals of the Revenue are partly allowed for statistical purposes

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunathan, Hon'Ble

…Taxmann 386] the Hon'ble Punjab and Haryana High Court held that provision of warranty for repairs/replacement is an existing liability at time of sale and is allowable as deduction. Mumbai Bench of the Tribunal in the case of Indian Oil Tanking Ltd. v. ITO [120 ITD 237] held that Assessing Officer cannot make addition of provision of performance warranties to net profit of assessee for arriving at its book profit u/s 115JB. Considering all these decisions and the facts of this case the Ld.CIT(A) allowed the claim of the assessee which in our view is right. Therefore, respectfully following the said decision of…