9911796707
TMI Blog2022 (6) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... gain arising in future years and whether the Department has accepted the same or not. These facts are not available on record and hence, we presume that the loan taken for purchase of machinery is rightly held by AO as capital loss. We affirm the findings of lower authorities on this issue. Depreciation at the appropriate rate by increasing the cost of the machinery - Alternate claim made by assessee is that in case, the effect is to be given for change in foreign exchange rates on FCTL, obtained by conversion of rupee term loan is considered to be a capital expenditure, the same ought to have been considered as the cost of asset purchased and depreciation should have been allowed on the cost of asset including this forex loss. We dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as capital loss, the same will increase the cost of asset i.e., machinery and the depreciation at the appropriate rate by increasing the cost of this machinery be allowed to the assessee. 4. Brief facts are that during the financial year 2012-13 relevant to assessment year 2013-14, assessee claimed loss on foreign currency transaction to the extent of Rs.81,66,986/- and claimed the same as revenue expenditure in the nature of financial cost. The assessee claimed this forex loss on FCTL loan availed from Indian Overseas Bank with the stipulation that the FCTL will be subject to roll over every six months. The assessee before AO and CIT(A) stated the fact that FCTL loan has been taken for purchase of indigenous assets i.e., purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record and hence, we presume that the loan taken for purchase of machinery is rightly held by AO as capital loss. We affirm the findings of lower authorities on this issue. 6. However, we noted that alternate claim made by assessee is that in case, the effect is to be given for change in foreign exchange rates on FCTL, obtained by conversion of rupee term loan is considered to be a capital expenditure, the same ought to have been considered as the cost of asset purchased and depreciation should have been allowed on the cost of asset including this forex loss. We direct the AO to allow depreciation on this amount at an appropriate rate. Hence, this alternate claim of assessee is allowed. 7. In the result, the appeal filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
