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TMI Blog1998 (2) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... s reflected as below : "Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 43A(2) of the Income-tax Act, 1961, the Appellate Tribunal was correct in holding that the assessee is entitled to development rebate under section 33 of the Income-tax Act, 1961, on the increased cost of the machinery of Rs. 1,41,185 due to devaluation of Indian curr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sum of Rs. 1,41,185 also on the ground that the actual cost as per section 43(1) of the Income-tax Act, 1961 (for short "the Act"), would include the increased cost in view of the devaluation of the Indian currency. The Income-tax Officer did not allow the claim of the assessee. According to him, the provisions of section 43A(2) clearly prohibits allowance of development rebate on the incr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebate allowable under section 33 in computing the actual cost of the asset for the purpose of development rebate. The only provision relevant is section 43(1) defining "actual cost" and, therefore, the assessee was entitled to development rebate on the amount of Rs. 1,41,185 also, which was payable as a result of change in the rate of exchange of currency and, consequently, the claim was allowed g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of development rebate any increase or decrease in the actual cost consequent on fluctuations in the exchange rate should not be taken into account. It is not necessary to attribute any particular reason for the provision when the language of the section is otherwise plain and unambiguous. On the face of the language of section 43A(2), it would not be right to permit the assessees to cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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