1992 (10) TMI 3 - SCH - Income Tax

Plant and machinery had been purchased subsequent to the date of devaluation of Indian currency - money was deposited in U.K. prior to devaluation - held that rupee value after depreciation is to be adopted for actual cost for purposes of depreciation & development rebate

Summary

The Supreme Court dismissed the appeals, stating that the actual cost incurred by the assessee for plant and machinery purchased after the devaluation of Indian currency should be calculated in Indian currency equivalent to the amounts paid in sterling at the exchange rate on the relevant purchase dates. The High Court's conclusion was upheld. No costs were awarded.