Provision for ascertained liability Rotork Controls India P Ltd v CIT 314 ITR 62 SC Judgment - warranties Provision – to recognize (a) an enterprise has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle obligation; and c) a reliable estimate can be made of amount of obligation Good Guidelines – to specify ascertained liability and claim deduction Good Judgment giving credence to Accounting Standards and claiming deduction of expenditure
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