https://www.taxtmi.com/caselaws?id=5350 SC held that the assessee's case squarely fell within section 43A(1), as the additional liability arose from foreign currency fluctuation on machinery imported with foreign borrowings. The increased liability must therefore be added to actual cost for all purposes, including depreciation and other allowances. However, by virtue of section 43A(2), such adjusted actual cost cannot be adopted for computing development rebate. For development rebate, only the original actual cost prior to devaluation is relevant. SC therefore upheld the Assessing Officer's action in restricting development rebate to Rs. 52.48 lakhs and disallowing the claim on Rs. 61 lakhs, and allowed the appeal, without costs. en-us Tue, 10 Dec 1991 00:00:00 +0530 Tue, 09 Dec 2025 12:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5350 SC held that the assessee's case squarely fell within section 43A(1), as the additional liability arose from foreign currency fluctuation on machinery imported with foreign borrowings. The increased liability must therefore be added to actual cost for all purposes, including depreciation and other allowances. However, by virtue of section 43A(2), such adjusted actual cost cannot be adopted for computing development rebate. For development rebate, only the original actual cost prior to devaluation is relevant. SC therefore upheld the Assessing Officer's action in restricting development rebate to Rs. 52.48 lakhs and disallowing the claim on Rs. 61 lakhs, and allowed the appeal, without costs. Case-Laws Income Tax Tue, 10 Dec 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5350