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2024 (4) TMI 344 - AT - Income TaxTP Adjustment - notional interest towards delayed receipt of export proceeds from its Associated Enterprises (AEs) - whether international transactions u/s 92CA of the Act? - HELD THAT:- In the instant case, the assessee has merely raised a new facet of argument to support its plea on lack of justifiable grounds for impugned Transfer Pricing Adjustment on account of short delays in receipt of export receivables. Hon’ble Supreme Court in Goetze India [2006 (3) TMI 75 - SUPREME COURT] has not put any restrictions or fetters upon the assessee to raise a new plea on the subject matter of dispute before the appellate authorities including CIT(A). Thus, non-consideration of the new facet of contentions raised before the CIT(A) does not appear justified. Hence, without going into merits of the correctness of additions made by the AO, we consider it expedient to restore the matter back to the file of the CIT(A) for fresh examination of the issue in accordance with law. Appeal of the assessee is allowed for statistical purposes. Disallowance of depreciation on account of exchange fluctuations in respect of assets acquired in India utilizing the funds raised through foreign currency convertible bonds (FCCBs) - HELD THAT:- The facts in the present Assessment Year i.e. 2012-13 [2021 (8) TMI 1414 - ITAT DELHI] are also identical and no distinguishing facts were pointed out by the DR. Assessee has attributed the liability in the present Assessment Year to the fixed assets which were acquired in India out of foreign currency loan. Since the fixed asset was acquired by utilizing foreign currency loan and on account of currency fluctuation, the loan liability was added to the fixed assets. Thus, the assessee is entitled to depreciation on exchange loss. Therefore, we direct the AO to allow the depreciation attributable to capitalization of exchange rate fluctuation loss. Thus, the appeal of the assessee is allowed.
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