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2009 (1) TMI 427 - HC - Income TaxDepreciation-Investment allowance- “Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the appellant was not entitled to depreciation of Rs. 43,71,472 and the investment allowance of Rs. 27,01,145 on the increased cost of the plant and machinery resulting from increase in the liability to repay the foreign currency loans increased for purchase of such plant and machinery? Held that- the assessee was entitled to depreciation and investment allowance on the increased cost of the plant and machinery resulting from increase in the liberty to repay the foreign currency loans incurred for purchase of such plant and machinery. It would be appropriate to grant liberty to the assessee to establish the factual position relating to fluctuation in the foreign exchange rate only in connection with the investment allowance. The same situation would arise in respect of depreciation. The appeal is allowed in favour of appellant.
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