TMI Blog1990 (8) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... 63 of the Income-tax Act, 1961, holding that the provisions of section 263 were not correctly invoked in this case ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the provisions of rule 115 of the Income-tax Rules, 1962, were not correctly applied to the facts of this case and that no adjustments to the cost of the plant and machinery on account of exchange fluctuations is called for the purpose of allowing depreciation under section 43A of the Income-tax Act, 1961 ? 3. Whether, on the facts and in the circumstances of the case, and in law, the Tribunal was justified in holding that no adjustment of the cost or written down value of depreciable assets on account of excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the present case, it is clear that, when an assessee has acquired an asset from a country outside India for the purposes of his business and, in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there is an increase in the liability of the assessee as expressed in Indian currency for making payment towards the cost of the asset or for repayment of the whole or a part of the moneys borrowed by him in any foreign currency specifically for the purpose of acquiring the asset, the amount by which the liability is so increased shall be added to the actual cost of the asset for the various purposes which are set out in section 43A and the increased cost shall be the cost of acquisition of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his would prima facie exclude technical know-how which cannot be installed. Mr. Dastur, learned counsel for the assessee, has, however, drawn our attention, in the present case, to the decision of our court in CIT v. Saraspur Mills Ltd. [1959] 36 ITR 580, where similar provisions relating to development rebate under section 10(2)(vib) of the Indian Income-tax Act, 1922, were considered. The court considered the expression "plant installed" in that section and said that it did not necessarily mean something fixed in position but it should be construed widely in the sense of "inducted or introduced". This decision has been expressly approved by the Supreme Court in CIT v. Mir Mohammad Ali [1964] 53 ITR 165. The Supreme Court also said that "m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
