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2002 (10) TMI 79 - HC - Income TaxPurchase Of Plant And Machinary From Abroad - This reference has been placed before the Full Bench pursuant to the order dated March 13, 2001, passed by a Division Bench of this court taking the view that the decision of another Division Bench of this court in CIT v. Windsor Foods Ltd. dealing with the question of interplay between the provisions of section 32A (investment allowance) and those of section 43A (relating to fluctuation in foreign exchange rate) of the Income-tax Act, 1961 ("the Act"), requires reconsideration. - "Whether, the Tribunal has been right in law and on facts in holding that the assessee is entitled to investment allowance on account of additional expenditure in the cost of the plant and machinery on account of realignment of currency?" - The decision of the Division Bench in the case of Windsor Foods Ltd. is therefore overruled and held to be not laying down the correct law as regards allowability of investment allowance on an enhanced cost. - In so far as the aspect of interest payable, on the borrowing or deferred credit which is payable in instalments, forming part of the instalment is concerned, it is not necessary for us to deal with the said aspect as such interest component will be governed by the provisions of section 36(1)(iii) or Explanation 8 under section 43(1) of the Act.
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