Depreciation on enhanced cost permitted only when outstanding foreign liability is discharged after devaluation, not by wealth-tax revaluation. Depreciation on enhanced cost is allowed only when an assessee had an outstanding purchase or foreign-loan liability on the date of devaluation and the additional rupee liability was discharged after devaluation; enhancement of asset value for wealth-tax does not automatically permit depreciation on the enhanced amount, and where full price was paid before devaluation depreciation remains on the original cost.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Depreciation on enhanced cost permitted only when outstanding foreign liability is discharged after devaluation, not by wealth-tax revaluation.
Depreciation on enhanced cost is allowed only when an assessee had an outstanding purchase or foreign-loan liability on the date of devaluation and the additional rupee liability was discharged after devaluation; enhancement of asset value for wealth-tax does not automatically permit depreciation on the enhanced amount, and where full price was paid before devaluation depreciation remains on the original cost.
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