1997 (12) TMI 5

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....t, we are here concerned only with the following two questions : "(2) Whether, on the facts and in the circumstances of the case, and having regard to the fact that the net gain of Rs. 48,984 was made by the assessee-company from fluctuations in the rate of foreign exchange while repaying the instalments of the foreign loan for the assessment year 1960-61, the appropriate part of the said gain ....

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....sessment year 1961-62 ?" The High Court has followed its earlier decisions in the case of CIT v. Tata Hydro Electric Power Supply Co. Ltd. [1986] 159 ITR 28 (Bom). A point has been taken on behalf of the respondents that the Department not having come up in appeal against that decision, must be taken to have accepted the law stated in that decision as correct. Therefore, it should not be allowe....

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....nd it difficult to follow how the manner of repayment of loan can affect the cost of the assets acquired by the assessee. What is the actual cost must depend on the amount paid by the assessee to acquire the asset. The amount may have been borrowed by the assessee, but even if the assessee did not repay the loan it will not alter the cost of the asset. If the borrower defaults in repayment of a pa....