HC Remands Case to ITAT on Exchange Rate Loss for Assets Acquired in India Under Sections 43A & 37(1)

PCIT Vs Aayakar Bhavan (Bombay High Court) Matter was remitted back to ITAT for determining capital asset financed by foreign currency loan could be capitalized u/s 43A If such asset was acquired within India Conclusion: While expounding on the positive mandate of 43A as against the negative caveat in 37(1), the Bench observed that the essential jurisdictional fact for the mandatory capitalization of such an expense u/s 43A is that the capital asset financed by the foreign currency loan in question, must have been brought into India from a country outside India. High Court therefore remitted t...