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2019 (6) TMI 1434 - AT - Income TaxAddition u/s 43A - Disallowing Foreign Exchange Loss by treating it to be of capital nature - HELD THAT:- It is an undisputed fact that assessee had obtained a loan from a holding company. It is also a fact that the loan was utilized for acquisition of capital assets in India and was not utilized for acquisition of capital asset from outside India. We find that Sec.43A of the Act becomes applicable when the assets are acquired from a country outside India and does not apply to acquisition of indigenous assets. Similar view was taken by the Coordinate Bench of the Tribunal in the case of Cooper Corporation Pvt. Ltd. Vs. DCIT [2016 (5) TMI 809 - ITAT PUNE]. In the present case, since assets were acquired in India, we are of the view that provisions of Sec.43A of the Act are not applicable in the present facts. We therefore set aside the invocation of Sec.43-A of the Act. Thus, the grounds of the assessee are allowed.
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