https://www.taxtmi.com/caselaws?id=57199 The Tribunal ruled in favor of the appellant, a private limited company, in a case concerning the interpretation of "actual cost" under section 43(1) of the IT Act for depreciation and investment allowance on a penalty paid to customs authorities. The Tribunal held that the penalty of Rs. 20,000 should be considered part of the actual cost of the imported machinery, as it was necessary to obtain possession of the asset. Relying on legal precedents and accounting principles, the Tribunal allowed the appeal, directing the Income Tax Officer to grant depreciation and investment allowance based on the increased cost of the machinery. en-us Tue, 17 Feb 1987 00:00:00 +0530 Wed, 08 Dec 2010 18:32:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57199 The Tribunal ruled in favor of the appellant, a private limited company, in a case concerning the interpretation of "actual cost" under section 43(1) of the IT Act for depreciation and investment allowance on a penalty paid to customs authorities. The Tribunal held that the penalty of Rs. 20,000 should be considered part of the actual cost of the imported machinery, as it was necessary to obtain possession of the asset. Relying on legal precedents and accounting principles, the Tribunal allowed the appeal, directing the Income Tax Officer to grant depreciation and investment allowance based on the increased cost of the machinery. Case-Laws Income Tax Tue, 17 Feb 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57199