AMNEAL PHARMACEUTICALS PRIVATE LIMITED,AHMEDABAD vs. THE DY.CIT, CIRCLE-1(1)(1), AHMEDABAD

ITA 2367/AHD/2025Status: DisposedITAT Ahmedabad12 October 2026AY 2018-195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal agreed with the Ld. CIT(A) that the claim for additional depreciation could not be decided on merits at that stage due to the absence of necessary details and documents. The Ld. A.R. requested that the matter be set aside to the AO for fresh assessment, allowing the assessee to submit the required evidence. The Ld. Sr. D.R. had no objection to this course of action. Therefore, in the interest of justice and fair assessment, the Tribunal restored the issue of additional depreciation relating to foreign exchange fluctuation to the Jurisdictional Assessing Officer for fresh assessment. The assessee was directed to submit all relevant details and documents to establish the correctness of the claimed amount. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Amneal Pharmaceuticals Private Limited, filed an appeal against the order of the NFAC, Delhi, for Assessment Year 2018-19. The appeal challenged the rejection of an additional depreciation claim of INR 1,34,07,372/-. This claim was based on realized foreign exchange fluctuation amounting to INR 5,63,84,469/-, pertaining to the period prior to April 1, 2016. The claim was not initially made in the return but was submitted during assessment proceedings. The Assessing Officer (AO) did not address this claim. The CIT(A) dismissed the claim due to the assessee's failure to provide necessary documentary evidence to substantiate the foreign exchange loss on capital assets.

What were the issues?

1. Whether the Tribunal had to decide if the assessee was entitled to an additional claim of depreciation on realized foreign exchange fluctuation amounting to INR 1,34,07,372/- for Assessment Year 2018-19, considering the provisions of Section 43AA of the Income Tax Act, 1961. Assessee's Contention: The assessee argued that due to the introduction of Section 43AA (effective April 1, 2016), they inadvertently did not capitalize the realized foreign exchange fluctuation loss on domestic assets pertaining to the period prior to April 1, 2016. They relied on the decision in Aesseal India Pvt. Ltd. vs. ITO (ITAT Pune Bench) and CIT vs. Woodward Governor India Pvt. Ltd. (Supreme Court). Revenue's Contention: The revenue, through the Ld. Sr. D.R., supported the CIT(A)'s observation that the claim could not be entertained due to the absence of crucial documentary evidence, such as purchase invoices, bank statements, and foreign currency loan documents, as noted in paragraph 4.1 of the CIT(A)'s order.

Which sections of the Income-tax Act were involved?

Section 43AA,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri Narendra Prasad Sinha & Shri Tapas Ram Misra

For Appellant: Shri Dhinal Shah, A.R
For Respondent: Shri Amit Pratap Singh, Sr. D.R

PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The present appeal has been filed by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi (hereinafter referred to as “CIT(A)”), dated 09.09.2025 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2018-19. I.T.A No. 2367/Ahd/2025

2.

The assessee has

The order continues below.

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