2022 (12) TMI 103

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.... the Respondent : Shri D. Hema Bhupal, JCIT ORDER PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-1, Coimbatore, in Appeal No.141/15-16 dated 30.05.2017. The re-assessment under dispute was framed by the DCIT, Corporate Circle-1, Coimbatore for the assessment year 2009-10 u/s.143(3) r.w.s. 147 of the Income....

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....in law. (4) The learned CIT(A) ought to have held that where section 43A is not applicable in respect of foreign exchange fluctuation loss, the appellant is entitled to deduction in respect of any obligation in respect of debt u/s 2(28A) of the I.T.Act, 1961, for purchase of a capital asset, in the computation of 'profits and gains of business in the facts and the circumstances of the....

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.... availed for purchase of wind mill being capitalized. The assessee has availed depreciation at 80% on this foreign exchan loss. On verification of the details filed, it I seen that the assessee has acquired Vestas Wind Mill in India by using foreign currency loan. As per the provisions of Section 43A of the IT Act, the assets should have acquired outside India to avail the benefit of depreciation.....

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....ot apply to assessee's case for the reason that these assets are indigenous assets and not purchased from out of India. However, ld.counsel stated that once the assessee has capitalized these and claimed depreciation spread over many years, he did not want to disturb the finalized assessments. Hence, the claim of depreciation in case is allowed, he has no grievance. On query from the Bench, the ld....