Business expenditure

Provision for warranty — The assessee is entitled to claim a deduction in respect of the provision for warranty made on past experience, as held by BangTrib in Acer India (P) Ltd v DCIT — In favour of: The assessee (partly).

Deduction under s 80-IB — Interest income earned from deposits made for opening letter of credit with the banks for the purpose of availing of credit facilities to carry on the business is allowable under s 80-IB.

Decided on: 25 February 2011.