{"id":202980,"date":"2002-11-20T00:00:00","date_gmt":"2002-11-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ahmedabad-kaiser-i-hind-mills-vs-commissioner-of-income-tax-on-20-november-2002"},"modified":"2019-01-03T21:43:03","modified_gmt":"2019-01-03T16:13:03","slug":"ahmedabad-kaiser-i-hind-mills-vs-commissioner-of-income-tax-on-20-november-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ahmedabad-kaiser-i-hind-mills-vs-commissioner-of-income-tax-on-20-november-2002","title":{"rendered":"Ahmedabad Kaiser-I-Hind Mills &#8230; vs Commissioner Of Income-Tax on 20 November, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Ahmedabad Kaiser-I-Hind Mills &#8230; vs Commissioner Of Income-Tax on 20 November, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2003 264 ITR 666 Guj<\/div>\n<div class=\"doc_author\">Author: A Dave<\/div>\n<div class=\"doc_bench\">Bench: A Dave, K Mehta<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> A.R. Dave,  J. <\/p>\n<p> 1.  At the instance of the applicant-assessee, the following question of law has been referred to this court by the Income-tax Appellate Tribunal, Ahmedabad Bench &#8220;A&#8221;, under the provisions of section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as &#8220;the Act&#8221;).\n<\/p>\n<p>  &#8220;Whether, on the facts and in the circumstances of the case, the assessee was entitled to investment allowance in respect of the liability arising out of the fluctuation in exchange rates relatable to the repayment of the principal amount borrowed for purchase of capital equipment ?&#8221;\n<\/p>\n<p>2. Mrs. Mauna M. Bhatt, learned standing counsel for the Central Government, has appeared for the Revenue, whereas nobody has appeared for the applicant-assessee though the notice of this court has been duly served upon the official liquidator as the applicant-company has been ordered to be wound up by this court.\n<\/p>\n<p>3. Our attention has been drawn by learned counsel appearing for the respondent to a judgment delivered by this court in the case of CIT v. Gujarat State Fertilizers Co. Ltd. [2003] 259 ITR 526 [FB] being I.T.R. No. 178 of 1985, on October 19, 2002.\n<\/p>\n<p>4. It has been submitted by learned counsel that a similar question had been referred to the Full Bench in the case referred to hereinabove. The majority view of the Bench is to the effect that the assessee in such a case is entitled to investment allowance in respect of liability arising out of the fluctuations in exchange rate relatable to repayment of the principal amount borrowed for the purpose of purchase of capital equipment.\n<\/p>\n<p>5. Looking to the law laid down by this court in the judgment referred to hereinabove, we answer the question in the affirmative, that is, in favour of the assessee and against the Revenue.\n<\/p>\n<p>6. The reference, thus, stands disposed of accordingly with no order as to<br \/>\ncosts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Ahmedabad Kaiser-I-Hind Mills &#8230; vs Commissioner Of Income-Tax on 20 November, 2002 Equivalent citations: 2003 264 ITR 666 Guj Author: A Dave Bench: A Dave, K Mehta JUDGMENT A.R. Dave, J. 1. At the instance of the applicant-assessee, the following question of law has been referred to this court by the Income-tax [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-202980","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Ahmedabad Kaiser-I-Hind Mills ... vs Commissioner Of Income-Tax on 20 November, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ahmedabad-kaiser-i-hind-mills-vs-commissioner-of-income-tax-on-20-november-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ahmedabad Kaiser-I-Hind Mills ... vs Commissioner Of Income-Tax on 20 November, 2002 - Free Judgements of Supreme Court &amp; 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