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2022 (10) TMI 1044 - AT - Income TaxRevision u/s 263 by CIT - disallowance of a part of depreciation by reducing the value of plant and machinery and disallowance of higher rate of depreciation in respect of factory building - AO misunderstood the difference occasioned due to the variance in the method of valuation of the cost asset under Companies Act and section 43A - HELD THAT:- Method adopted by the assessee and accepted by CIT(A) is in accordance with the adjustment in the actual cost of the assets with reference to the change in the rate of foreign exchange subsequent to the acquisition of the asset. Hon'ble Apex Court in the above decision clearly held that section 43A which corresponds to para 10 of AS-11, particularly in the light of section 43(1) makes it not possible to adjustment of the carrying cost of the fixed assets acquired in foreign exchange. Though the DR produced the details of year wise CWIP, EDCP and capitalized machinery/equipment, it missed the attention of the DR that an amount is mentioned therein as capitalized machinery cost. When the foreign exchange earned during the year under consideration to the tune the assessee rightly reached the difference which occasioned solely because of the different methods followed for valuation of the plant and machinery under the provisions of Companies Act and differently in compliance with the provisions of the 43A - This aspect has already been dealt with in the case of Woodward Governor India (P) Ltd., [2009 (4) TMI 4 - SUPREME COURT] and therefore, we do not find anything illegality or irregularity in the approach of the CIT(A) and accordingly, we decline to interfere with the same. Appeal of Revenue is dismissed.
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