Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act Investment allowance |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961; Ss. 32A and 43A(1):Investment allowance-Allowing of in one or more than one C financial years-Held: S.43A(J) relates to fluctuation of foreign exchange and has nothing to do with allowability of investment in terms of s. 32(A) of the Act in one or more assessment years - High Court did not take into consideration the related provisions of law in its proper perspective while dismissing the appeal of the Revenue - Hence, matter remitted to High Court for adjudication afresh after formulating the question of law involved.The main issue arose for consideration in these appeals was as to whether investment allowance under Section 32A of the Income Tax Act, 1961 could be allowed in one financial/assessment year only or in more than one financial years. The assessing officer was of the view that it is only to be allowed in one assessment year and not several assessment years. The Tribunal has proceeded on the basis that in view of Section 43A(1) of the Act the allowance could be granted in different assessment years. The order of the Tribunal was affirmed by the High Court relying on the decision of the High Court in the case of Southern Asbestos Cement Ltd. v. Commissioner of Income Tax (259 I.T.R.631). Hence the present appeals. Appellant contended that Section 43A(1) of the Income Tax Act relates to fluctuations of foreign exchange and its effect on the valuation of the assets. It has nothing to do with the question as to whether it is allowable in one year. Therefore, the decision relied upon by the High Court has no application. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2007 INSC 1321 |
Petitioner | Commissioner Of Income Tax, Madras |
Respondent | M/s. Lucas T.v.s. Ltd. Padi Chennai |
SCR | [2007] 13 S.C.R. 958 |
Judgement Date | 2007-12-14 |
Case Number | 5950 |
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