EICHER MOTORS LTD Vs. CIT

JUDGEMENT

(1.) THE impugned findings recorded by the Income Tax Appellate Tribunal (,,Tribunal, for short) in their order dated 16.09.2011 in the case of Eicher Motors Ltd. are as under: -

(2.) THE appellant-assessee is in the business of manufacture and sales of automobiles in India and by way of export. During the period relevant to the assessment year 2005-06 the appellant-assessee had estimated and made provision towards warranty claim of RS.1424.12 lakhs, which was bifurcated into the following heads: - RS.951.00

(3.) AT the outset we may note that the dispute/ subject matter of the present appeal is in respect to the disallowance of the 4th claim/head i.e. claim of additional warranty on domestic sales of Rs.91.70 lakhs. There is no dispute and the Revenue has accepted the claim of appellant- assessee with regard to the normal warranty at the rate of 0.39% on domestic sales and 0.89% on export sales. There is also no dispute with regard to item Nos.2 & 3 which pertain to the extended warranty on engineering and transmission for LCV and extended warranty of one year on HCV of RS.285.69 and RS.95.73 lakhs, respectively.