Quiz for the week (03 Nov 2025) :
Modest (P) Ltd is engaged in manufacture of mobile handsets at Mysore. The company previously imported some of the parts and did only assembly of handsets. It commenced its own manufacture in April, 2023. It provided a warranty of 24 months based on industry standards and it is the first Indian company to indigenously manufacture the mobile phone handsets. For the financial year 2024-25, it enhanced the cost of warranty to 10% of sale price based on the actual claims made and expenditures incurred in the financial year 2023-24. Previously the company provided for warranty 25%. The amount of provision was Rs.3 crores for the financial year 2024-25. Is the provision so made be eligible for deduction under section 37?
Share your thoughts on the above on or before 10th November, 2025