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Depreciation on forex loss pertained to non-depreciable asset acquired in India could be claimed as loss from income
Case Law Details
- Case Name
- M/s Paramount Communications Ltd. Vs DCIT (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2009-10
- Courts
- All ITAT, ITAT Delhi
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M/s Paramount Communications Ltd. Vs DCIT (ITAT Delhi)
Conclusion: Since AS-11 was mandatory and required to be followed in computing the income, therefore, assessee was entitled to claim depreciation on forex loss pertained to non-depreciable asset acquired in India as loss from income.
Held: Assessee had issued unsecured foreign currency convertible bonds of US$ 2,70,00,000/-. The entire proceeds were utilized in AY 2007-08 & 2008-09. As on 31.03.2009, the liability was in Rupee terms Rs.138,21,30,000/- whereas on 31.03.2008 it was Rs.1,08,00,00,000/-. Thus, the amount of Rs.30,21,30,0...
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