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TMI Blog2024 (7) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (10) TMI 79 - GUJARAT HIGH COURT] on a plain reading of section 43A of the Act, one thing is certain, and that is, the increase or reduction in the liability has to take place only in the year of fluctuation and it does not relate back to the year of acquisition/installation/first user. One will therefore have to proceed on the footing that the actual cost figure which was quantified earlier than the previous year in which the fluctuation took place, shall have to be modified in the year of fluctuation. It is well-settled that when the asset was purchased at a price, liability was to be discharged in installments, it cannot be stated that the liability did not exist or accrue till the installments became due and payable. It is this liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 003, 594 of 2003, 596 of 2003 and 598 of 2003 in the case of M/s. Tolani Shipping Co. Ltd., an affiliate of this Assessee. 3. At all times relevant to these Appeals, the Assessee was engaged in the business of shipping and had acquired a vessel by the name M/s. M.V. Prabhu Das. The acquisition was paid for in foreign currency, for which a foreign currency loan had been taken. In the return of income filed by the Assessee, in terms of Section 32A as that Section then stood, a deduction at the rate of 20% of the actual cost of the ship owned by the Assessee and wholly used for the purpose of the business of the Assessee was claimed. Section 32A (3) contemplated that the Assessee may carry forward such claim for a period of not more than eight ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We, therefore, answer the third question in the affirmative, i.e, in favour of the Revenue and against the Assessee. 5. Learned Counsel for both parties submit that the view expressed in the Khatau Makanji was held to be per incuriam in the case of Associated Bearing Co. Ltd Vs. Commissioner of Income-tax [2006] 286 itr 341 (Bom.), and such view was later followed in Commissioner of Income-tax-2 Vs. Tata Chemicals Ltd. [2016] 75 taxmann.com 228 (Bombay) . 6. Dealing with these issues, the Division Bench of this Court in its order dated 20th January, 2023 (referred to above) had extracted from and analyzed the decision in Commissioner of Income-Tax Vs. Gujarat State Fertilizers Co. Ltd. as follows:- ...On a plain reading of section 43A of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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