| Case ID |
2ae55b62-859c-4ee6-bde0-2d42da845710 |
| Body |
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| Case Number |
CIVIL APPEAL NO. 6144 OF 2008 |
| Decision Date |
Oct 17, 2008 |
| Hearing Date |
|
| Decision |
The Supreme Court of India upheld the decision of the Tribunal, remanding the case back to allow the assessee to provide factual details regarding fluctuations in foreign exchange rates impacting the cost of plant and machinery. The court emphasized that section 43A(1) applies whenever there is a fluctuation in foreign exchange rates that affects the liability in the previous year. The court noted the importance of establishing the factual position before considering the deduction claimed by the assessee in accordance with the provisions of the Income-tax Act. The court distinguished previous cases and clarified the applicability of the law to the current situation. |
| Summary |
In the landmark case of Commissioner of Income-tax v. Gujarat Siddhi Cement Ltd., the Supreme Court of India addressed the interpretation of section 43A of the Income-tax Act, 1961, particularly in the context of foreign currency fluctuations impacting investment allowances. The case arose from the assessee's claim for increased investment allowance due to the increased cost of plant and machinery caused by fluctuations in foreign exchange rates during the assessment year 1993-94. The Assessing Officer initially disallowed the claim, leading to a series of appeals that culminated in the Supreme Court's ruling. The court underscored the necessity for the assessee to furnish factual details regarding the fluctuations to validate the claim. This decision is significant for taxpayers dealing with foreign exchange and investment allowances, providing clarity on the application of section 43A(1) and emphasizing the importance of substantiating claims with factual evidence. Keywords include 'Income-tax Act', 'foreign exchange', 'investment allowance', 'Supreme Court ruling', and 'taxpayer rights'. |
| Court |
Supreme Court of India
|
| Entities Involved |
Gujarat Siddhi Cement Ltd.,
Commissioner of Income-tax, Rajkot
|
| Judges |
Dr. Arijit Pasayat,
Dr. Mukundakam Sharma
|
| Lawyers |
V. Shekhar,
Ms. Shweta Garg,
Ganesh,
Ashish Gopal Garg,
B.V. Balram Das,
Bhargava V. Desai,
Rahul Gupta,
Ms. Reema Sharma
|
| Petitioners |
Commissioner of Income-tax, Rajkot
|
| Respondents |
Gujarat Siddhi Cement Ltd.
|
| Citations |
2008 SLD 2313,
(2008) 307 ITR 393,
(2008) 174 TAXMAN 598
|
| Other Citations |
CIT v. Gujarat Fertilizers [2003] 259 ITR 526,
CIT v. Lucas TVS Ltd. [2008] 166 Taxman 164,
CIT v. Arvind Mills [1992] 60 Taxman 192
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
43A,
32A
|