Words and Phrases - "indemnities"

In consideration of charging a customer $1.00 more for the replacement of a muffler, the taxpayer undertook to replace a defective muffler free of charge as long as the purchaser remained owner of the car in which the muffler had been installed. The deduction by the taxpayer of a reserve under what now is s. 20(1)(m), based on its experience that only about 1/5 of the mufflers it installed had to be replaced, was denied by virtue of s. 20(7). It was intended that the words "guarantees, indemnities and warranties" "should be comprehensive enough to include all types of guarantees, indemnities or warranties, which the Act intended to exclude from immediate deduction by way of reserves because of their contingent and uncertain nature."