Court rules cost calculation for post-devaluation machinery purchases must be in Indian currency

The Supreme Court upheld the High Court's decision, ruling that the cost of plant and machinery purchased after the devaluation of Indian currency should be calculated in Indian currency equivalent to the sterling amounts paid on the purchase dates. The appeals were dismissed without costs awarded.

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The Supreme Court dismissed the appeals, stating that the actual cost incurred by the assessee for plant and machinery purchased after the devaluation of Indian currency should be calculated in Indian currency equivalent to the amounts paid in sterling at the exchange rate on the relevant purchase dates. The High Court's conclusion was upheld. No costs were awarded.

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