https://www.taxtmi.com/caselaws?id=15426 The case involved a cooperative sugar mill seeking investment allowance for increased machinery costs due to foreign exchange rate fluctuations. The claim was initially denied but later allowed by the CIT(A) and upheld by the Tribunal. The Revenue challenged the inclusion of escalation charges in the plant's cost for investment allowance. The judgment clarified that exchange rate fluctuations impacting the actual cost of assets from foreign countries should be considered for investment allowance, even if the additional liability arises post-installation. The decision favored the assessee, granting them the investment allowance on the increased cost. en-us Thu, 22 Oct 1998 00:00:00 +0530 Thu, 06 Aug 2009 14:10:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15426 The case involved a cooperative sugar mill seeking investment allowance for increased machinery costs due to foreign exchange rate fluctuations. The claim was initially denied but later allowed by the CIT(A) and upheld by the Tribunal. The Revenue challenged the inclusion of escalation charges in the plant's cost for investment allowance. The judgment clarified that exchange rate fluctuations impacting the actual cost of assets from foreign countries should be considered for investment allowance, even if the additional liability arises post-installation. The decision favored the assessee, granting them the investment allowance on the increased cost. Case-Laws Income Tax Thu, 22 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15426