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2022 (12) TMI 103 - ITAT CHENNAIDepreciation on foreign exchange fluctuation loss relating to foreign currency term loan availed for purchase of windmill - applicability of provisions of section 43A - Disallowance of claim of depreciation on foreign exchange loss - HELD THAT:- We noted that the assessee has purchased windmill and capitalized the same in its books of accounts. The assessee purchased this machinery indigenously and hence, provisions of section 43A will not apply. But, since the assessee has capitalized and claimed depreciation in spread over years and assessments have become final and in this year, the assessee has made claim of depreciation @ 80% on the loan on account of foreign exchange fluctuation loss relating to foreign currency term loan, which was availed for the purchase of this windmill and capitalized, hence we are of the view that the assessee is entitled for claim of depreciation and we allow the same.
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