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2016 (1) TMI 901 - ITAT DELHIDisallowance of loss of foreign Exchange Fluctuation loss - CIT(A) deleted the addition - Held that:- The issue in dispute is squarely covered by the decision of the Hon'ble Supreme Court in the case of Wood world Governor India Pvt. Ltd., reported in (2009 (4) TMI 4 - SUPREME COURT) wherein it has been held that increase in liability on revenue account due to foreign exchange fluctuation as per the exchange rate prevailing as on the last day of the financial year was neither notional or a contingent liability and the same, there was allowable as a deduction. We do not find any infirmity in the order passed by the ld.CIT(A) - Decided against revenue Disallowance of depreciation on the opening WDV of P&M in respect of the amount of Custom Duty on import of P&M imported in the year - CIT(A) deleted the addition - Held that:- Perusal of the facts on record show that the Hon'ble ITAT in the appellant's own case from A. Y. 2003-04 & 2004-05 on identical facts has decided the issue in favor of the appellant stating that the Learned First Appellate Authority is not justified in confirming the disallowance of depreciation. The assessee has capitalized the security deposit by treating it at par with the customs duty. It has waited for 8 long years and when realized that follow up action with the customs department would be a futile exercise only then took a decision of capitalizing this amount on the value of the assets. In case in subsequent years assessee was able to get the amount the it will be offered for taxation or it will be brought to tax under sec. 41(1) of the Act. No prejudice is caused to the revenue if depreciation is allowed by permitting the assessee for capitalizing of this security deposit. - Decided against revenue
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