9911796707
TMI Blog2021 (8) TMI 1414X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- The facts in the present Assessment Year i.e. 2012-13 [ 2021 (6) TMI 609 - ITAT DELHI] are identical and no distinguishing facts were pointed out by the Ld. DR. The assessee has attributed the liability in the present Assessment Year to the fixed assets which were acquired in India out of foreign currency loan. Since the fixed asset was acquired by utilizing foreign currency loan and on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )-12, New Delhi [briefly the CIT(A) ] has erred in disallowing depreciation of Rs. 1,15,65,043/- attributable to capitalization of exchange rate fluctuations loss in respect of indigenous assets purchased in India. 1.1. That on the facts and circumstances of the case and In law, the CIT(A) has erred in not appreciating the fact that the assessee has taken consistent stand In all assessment years i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made addition/disallowance of excessive depreciation to the extent of Rs. 1,15,65,043/- and disallowance on account of PF/ESI u/s 2(24) (10) read with Section 36(1)(v) to the extent of 13, 07, 549/- vide order dated 11/2/2016. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. AR submitted the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le revenue expenditure, however, it would require tedious exercise of modifying assessments for number of year. Therefore, we hold that the assessee is entitled to depreciation on exchange loss and the additional grounds raised by the assessee for AY 2009-10 becomes in-fructuous. It is held in the case of CIT v. Industrial Finance Corp of India Ltd. (2009) 185 Taxman 296, that revenue expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch were acquired in India out of foreign currency loan. Since the fixed asset was acquired by utilizing foreign currency loan and on account of currency fluctuation, the loan liability was added to the fixed assets. Thus, the assessee is entitled to depreciation on exchange loss. Therefore, we direct the Assessing Officer to allow the depreciation attributable to capitalization of exchange rate fl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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