2002 (11) TMI 30 - HC - Income Tax

Investment allowance - Whether on the facts and in the circumstances of the case the assessee was entitled to investment allowance in respect of the liability arising out of the fluctuation in exchange rates relatable to the repayment of the principal amount borrowed for purchase of capital equipment ? - judgment delivered by this court in the case of CIT v. Gujarat State Fertilizers Co. Ltd. Followed - we answer the question in the affirmative that is in favour of the assessee and against the Revenue.

Summary

The High Court of Gujarat ruled in favor of the assessee regarding the entitlement to investment allowance for liability arising from exchange rate fluctuations related to repayment of borrowed capital for purchasing capital equipment. The judgment was delivered by Judges A. R. Dave and K. M. Mehta. The court referred to a previous judgment in a similar case and concluded in favor of the assessee.