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TMI Blog1997 (12) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... st of an asset acquired by the assessee for the purpose of his business. We hold that the questions were rightly answered by the High Court. The appeals of revenue are dismissed X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961-62, the appropriate part of each of the said two amounts (i.e., after excluding that portion of it which is attributable to the element of interest) was loss on capital account which went to increase the 'actual cost' of the depreciable assets for computing depreciation for the assessment year 1961-62 ?" The High Court has followed its earlier decisions in the case of CIT v. Tata Hydro Elect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of section 43A. Therefore, the decision rendered in the case relied upon by the High Court cannot have any bearing on the controversy now raised. We are of the view that Mr. Murthy is right in his contention on this aspect of the matter. Coming to the question raised, we find it difficult to follow how the manner of repayment of loan can affect the cost of the assets acquired by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge as a result of which, the assessee had to repay a much lesser amount than he would have otherwise paid. In our judgment, this is not a factor which can alter the cost incurred by the assessee for purchase of the asset. The assessee may have raised the funds to purchase the asset by borrowing but what the assessee has paid for it, is the price of the asset. That price cannot change by any event ..... X X X X Extracts X X X X X X X X Extracts X X X X
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