Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT
6 months, 1 week ago

Income Tax Deduction Allowable On Expenditure Incurred On Warranty Claim: ITAT

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The Delhi Bench of Income Tax Appellate Tribunal has held that the income tax deduction is allowable on expenditures incurred on warranty claims.The bench of Kul Bharat and M. Balaganesh has relied on the decision of the Supreme Court in the case of Rotork Controls India Ltd., in which it was held that if the facts establish or show that. The Delhi Bench of Income Tax Appellate Tribunal has held that the income tax deduction is allowable on expenditures incurred on warranty claims. The bench of Kul Bharat and M. Balaganesh has relied on the decision of the Supreme Court in the case of Rotork Controls India Ltd., in which it was held that if the facts establish or show that defects existed in some of the items manufactured and sold, then the provision made for warranty in respect of the army of sophisticated goods would be entitled to deduction under Section 37 of the Income Tax Act. Where the provision for an unexpired period is not allowed in the relevant assessment year, the actual expenditure incurred on warranty claims in the succeeding assessment year should be allowed.

Tax Income Period Claim Warranty Provision Itat Assessee Income Tax Deduction Warranty Expenses Rotork Controls India Warranty Claims Warranty Claim  incurred  deduction  income  allowable  assessee  assessment  bench  products  provision  itat  claim  expenditure  period  tax  warranty

History of this topic

Finance Act, 2013 | Audit Report Determining Tax Liability Doesn't Bar Eligibility Under Voluntary Compliance Encouragement Scheme: Delhi HC
3 weeks ago

Finance Act, 2013 | Audit Report Determining Tax Liability Doesn't Bar Eligibility Under Voluntary Compliance Encouragement Scheme: Delhi HC

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The Delhi High Court has held that an audit report determining liability towards tax dues is not a notice or an order of determination as contemplated under Section 106 of the Finance Act, 2013. Sub-section states that any person may declare his tax dues in respect of which no notice or an order of determination under section 72 or section …

Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITAT
4 months, 3 weeks ago

Bank Charges & Bank Guarantee Charges Wrongly Included As Interest: ITAT

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The Delhi Bench of Income Tax Appellate Tribunal has held that bank charges and bank guarantee charges do not partake in the character of interest and had been wrongly included as interest while making disallowance under section 14A of the Income Tax Act.The bench of G.S.Pannu and Kul Bharat has observed that the assessee had disallowed the. The Delhi Bench …

ITAT Half Yearly Digest: January To June 2024 - PART I
5 months, 1 week ago

ITAT Half Yearly Digest: January To June 2024 - PART I

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S. 54F Exemption Not Available On Property Predominantly Being Used For Religious Purposes: ITAT Case Title: Asstt. Explanation 3 To Sec 147 Can't Be Resorted To Make Addition On Any Other Issue Which Is Not Included In Reasons For Reopening: New Delhi ITAT Case Title: Vishram Sahakari Awas Samiti Limited verses ITO On finding that no addition is made based …

Unsettled Claims As Well As IBNR Would Amount To Contingent Liabilities; Section 37 Deduction Allowable: Delhi High Court
6 months, 1 week ago

Unsettled Claims As Well As IBNR Would Amount To Contingent Liabilities; Section 37 Deduction Allowable: Delhi High Court

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The Delhi High Court has held that the deduction under Section 37 of the Income Tax Act is allowable on unsettled claims as well as Incurred But Not Reported, which would amount to contingent liabilities.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav has observed that if the historical trend indicates that a large number of sophisticated goods …

Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024
6 months, 2 weeks ago

Direct Tax Cases Weekly Round-Up: 02 To 08 June 2024

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Delhi High Court Once Issue Of Arm's Length Remuneration Settled By TPO, Question Of Ascertaining Existence Of PE Is Academic; Delhi High Court Quashes Reassessment Proceedings Case Title: Progress Rail Locomotive Inc. Exemption Allowable On Donations Made By One Charitable Trust To Other Charitable Institutions For Temporary Period: Delhi High Court Case Title: Commissioner Of Income Tax Versus M/S Jamnalal …

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT
9 months, 1 week ago

Once ITO Accepted Income Earned Which Is Totally Based Upon Depreciation Plus 15% Markup, There Is No Reason To Deny Cost: Delhi ITAT

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Finding that the assessee had arrangement with its AE for billing cost plus 15%, which has been duly billed during the year and entire depreciation cost plus 15% has been billed to the AE, the New Delhi ITAT allowed the depreciation claimed by assessee. The Bench of Shamim Yahya and Challa Nagendra Prasad observed that “When the Revenue is accepting …

Filing Of Audit Report In Form 10CCB Before Due Date As Per Sec 139(1) Is Only Directory And Not Mandatory: New Delhi ITAT
9 months, 1 week ago

Filing Of Audit Report In Form 10CCB Before Due Date As Per Sec 139(1) Is Only Directory And Not Mandatory: New Delhi ITAT

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While holding that filing of audit report in Form 10CCB before the due date for filing of return of income u/s 139 of the Income Tax Act, 1961 is only directory and not mandatory for the year under consideration, the New Delhi ITAT directed the AO to allow deduction claimed u/s 80IA of the Income Tax Act, 1961. The ADIT …

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT
9 months, 1 week ago

Payee Who Has Considered Amounts Received By Payer In Its Return & Paid Taxes On Same, Can't Be Treated As In Default U/s 201(1): New Delhi ITAT

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On finding that CIT has failed to consider all submission of assessee and evidences placed on record, the New Delhi ITAT restored the matter back to file of AO for fresh adjudication regarding the TDS deduction u/s 194J or u/s 194C of the Income Tax Act, 1961 on the payments made towards maintenance of X-Ray machine and CVC machine. However, …

Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court
10 months, 2 weeks ago

Income Tax Deduction Available On Excise Duty Claim As It Does Not Amount To Double Deduction: Bombay High Court

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The Bombay High Court has held that excise duty paid and included in the closing stock has to be claimed separately as a deduction; otherwise, the appellant would not be claiming the entire excise duty paid in the year of its payment. The ITAT has held that the appellant was not entitled to the deduction representing the excise duty claimed …

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT
1 year, 4 months ago

ITAT Quashes Income Tax Addition In Respect Of Immovable Property Warranting Revision By The PCIT

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The Delhi Bench of the Income Tax Appellate Tribunal has quashed the income tax addition in respect of immovable property, warranting revision by the PCIT.The bench of Anubhav Sharma and M. Balaganesh has observed that AO, after making adequate inquiries, proceeded to make an addition for alleged money receipts on a protective basis in the hands of. The Delhi Bench …

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT
1 year, 7 months ago

Department Can Bring Expenditure Incurred In Earlier Years To Be Taxed In Subsequent Years On Grounds Of Bogus Expenditure: ITAT

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The Delhi Bench of the Income Tax Appellate Tribunal has observed that the department can bring expenditures incurred in earlier years to be taxed in subsequent years on grounds of bogus expenditure.The bench of B. R. R. Kumar has observed that the department can bring the expenditure incurred in the earlier years to be taxed in the subsequent years if …

S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court
1 year, 8 months ago

S. 80-IB Of Income Tax Act - Assessee Not Entitled To Deduction Under On Profit Derived From DEPB And Duty Drawback Schemes: Supreme Court

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The Supreme Court has ruled that the assessee is not entitled to deduction under Section 80- IB of the Income Tax Act, 1961 on the amount received / profit derived from the Duty Entitlement Pass Book Scheme and the Duty Drawback Schemes. The court noted that in the case of Liberty India, the Apex Court had observed and held that …

Tax Cases Monthly Round Up: March 2023
1 year, 8 months ago

Tax Cases Monthly Round Up: March 2023

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Indirect Taxes Supreme Court Case Title: State of Karnataka v. M/s. Case Title: M/s Lupin Limited Versus Commissioner of Central Tax & Customs, Guntur The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal has rejected the refund claim of Krishi Kalyan Cess worth rs. Delhi High Court Case Title: OYO Hotels and Homes Private Limited vs Deputy Assistant …

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023
1 year, 9 months ago

Tax Cases Weekly Round-Up: 12 March To 18 March, 2023

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Supreme Court Case Title: Commercial Tax Officer Versus Neeraja Pipes Pvt. Gujarat High Court Case Title: Keenara Industries Private Limited Versus Income Tax Officer The Gujarat High Court has held that the reassessment notices were issued after the lapse of six years and are therefore time-barred. Case Title: Manishkumar Tulsidas Kaneriya Versus Assistant Commissioner Of Income Tax, Central 1, Rajkot …

Tax Cases Weekly Round-Up: 6 November to 12 November 2022
2 years, 1 month ago

Tax Cases Weekly Round-Up: 6 November to 12 November 2022

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Delhi High Court Expenses Towards Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Rajasthan High Court Case Title: Pooja Agarwal Versus Commissioner of Income Tax-1 The Rajasthan High Court has held that the Income Tax Appellate Tribunal is the last fact-finding authority and is bound to follow the directions issued by the High Court in pith and substance. …

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court
2 years, 5 months ago

Explanation To Section 14A Of Income Tax Act Will Not Apply Retrospectively: Delhi High Court

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The Delhi High Court has ruled that the Explanation to Section 14A of the Income Tax Act, 1961, added vide the Finance Act, 2022, cannot be presumed to be retrospective in nature since it is clarificatory in nature and alters the law as it stood earlier. The revenue department submitted before the High Court that the ITAT had relied on …

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT
2 years, 6 months ago

Other Income Tax Additions In Reassessment Proceedings Cannot Be Sustained If Addition on Primary Grounds Is Not Made: ITAT

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The Delhi Bench of the Income Tax Appellate Tribunal consisting of C.N. The assessee/appellant has challenged the validity of the assessment made by the Assessing Officer as the assessment was reopened for escapement of income on account of cash deposits made into the bank account by the assessee. The reasons recorded by the Assessing Officer have reason to believe that …

Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT
2 years, 6 months ago

Assessee Entitled To Additional Depreciation On The Power Plant And Installed Windmill: Delhi ITAT

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The Delhi Bench of the Income Tax Appellate Tribunal consisting of Yogesh Kumar U.S. and B.R.R. The CIT deleted the addition on account of depreciation made while calculating book profit under section 115JB of the Income Tax Act. The CIT upheld the action of the Assessing Officer in making an addition on account of additional depreciation under section 32 of …

Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT
2 years, 9 months ago

Non-Deduction of TDS At The Year End As The Amount Payable Was Not Identifiable: Penalty not justifiable- ITAT

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The Delhi Bench of the Income Tax Appellate Tribunal, consisting of Kul Bharat and R.K. Panda, upheld the CIT order, holding that the mere fact that taxes were not deducted on the year end provision but were deducted and deposited upon crystallisation of liability to pay the expenses does not automatically justify the imposition of a penalty under section 271C …

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi
2 years, 9 months ago

AO's claim That The Assessee Is Only Into Job Work And Not Manufacturing Rejected, Deduction Allowed By ITAT Delhi

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal while allowing the deduction under Income Tax Act has rejected the claim of AO that the assessee is only into job work and not manufacturing. The assessee electronically filed its return of income, declaring nil income after claiming a deduction under section 80IC of the Income Tax Act. During the course …

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