TMI Blog2022 (12) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... on @ 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. - ITA No.: 2093/CHNY/2017 - - - Dated:- 27-9-2022 - Shri Mahavir Singh, Vice President And Shri Manoj Kumar Aggarwal, Accountant Member For the Appellant : Shri Vikram Vijayaraghavan, Advocate For the Respondent : Shri D. Hema Bhupal, JCIT ORDER PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-1, Coimbatore, in Appeal No.141/15-16 dated 30.05.2017. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion claim on account of foreign exchange fluctuation relating to foreign currency term loan availed for purchase of windmills being capitalized. The assessee availed depreciation @ 80% on this foreign exchange loans. Subsequently, the Revenue issued notice u/s.148 of the Act after recorded reasons and reopened the assessment and disallowed the claim of depreciation on foreign exchange loss. The AO observed in para 4 as under:- 4. On verification of the details filed, it is noticed that the assessee has added a sum of Rs.2,19,94,875/- on account of Foreign Exchange Fluctuation relating to Foreign Currency Term Loan availed for purchase of wind mill being capitalized. The assessee has availed depreciation at 80% on this foreign exchan los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of AO and that of the CIT(A). 5. After hearing rival contentions and going through the facts of the case, 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 depr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
