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1 - 10 of 13 (0.19 seconds)Finance Act, 2012
Section 36 in Finance Act, 2012 [Entire Act]
Section 43 in Finance Act, 2012 [Entire Act]
Section 48 in Finance Act, 2012 [Entire Act]
Section 50 in Finance Act, 2012 [Entire Act]
Section 6 in The Income Tax Act, 1961 [Entire Act]
Section 48 in The Income Tax Act, 1961 [Entire Act]
Section 50 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income Tax, Delhi vs M/S Woodward Governor India P. Ltd on 8 April, 2009
"So far as depreciation allowance is concerned the position
is perhaps a little simpler because it is a recurrent claim.
Under the definition contained under section 32 read with
section 43(1) and (6) of Income Tax Act, the depreciation as
to be allowed on thereof in earlier years, thus, where the
cost of assets subsequently goes up because of
devaluation, whatever might have been the position in the
earlier year, it is always open to the assessee to insist, and
for the income tax officer to agree, that the written down
value in the year in which the increased liability has arisen
should be taken on the basis of the increase cost minus
depreciation earlier allowed on the basis of old cost C.I.T.
vs. Woodward Governnor India (P) Ltd. (2007) 162 Taxman
60 Delhi, it was held in case where foreign currency is held
on revenue accounts. Increase in liability on accounts of
fluctuation in rate of foreign exchange prevailing on last day
of financial year is not notional or contingent and
therefore, can be allowed as deduction in term, of section
6
ITA NOS. 798-802/DEL/2010 &
I.T.A NOS. 963, 1931,1267-1269/DEL/2010
37(1). The amendment to section 43A providing that
amount by which liability is increased or reduced as a
result of change in rate of exchange during any previous
year after acquisition of such assets would be taken into
account at time of making payment irrespective of method
of accounting adopted by assessee is prospective prior to
said amendment in the capital account cases where cost of
assets has been either paid fully or in part prior to
fluctuation in rate of foreign exchange, cost of assets would
corresponding be permitted to be reworked for purpose of
repayment or depreciation or investment allowance as the
case may be with reference to rate prevailing on last days
of financial year in which that fluctuation occurs."