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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: SH. N. K. BILLAIYA & SH. PAWAN SINGH
This appeal filed by the assessee is preferred against the order of the CIT(A)-7, New Delhi dated 14.02.2017 for A.Y. 2011-12.
The solitary grievance of the assessee is that the CIT(A) erred in upholding the disallowance of depreciation of Rs.54,29,216/- relatable exchange fluctuations in respect of assets acquired in India from the funds raised through foreign currency convertible bonds following its own order of earlier assessment years.
The assessment proceedings can be summarized by the following observations made by the AO in the Assessment Order:-
“Disallowance of excessive deprecation claimed during current Assessment Year due to effect of disallowance of prorate exchange fluctuation loss pertaining to indigenous / domestic fixed assets made by CIT(A) for A.Y.2009-10 and assessing officer for A.Y.2010- 11.”
The CIT(A) confirmed the findings of the AO by observing as under :-
“4.3 Since the facts are similar, being in agreement with the reasoning given in the appellate order for AY 2009-10, which was followed by me in deciding appeal for A.Y.2010-11, the enhanced depreciation is not allowable. The addition of Rs.54,29,216/- is confirmed. This ground of appeal is ruled against the appellant.”
It can be seen that both the lower authorities have followed the orders of the earlier assessment years A.Y.2009-10 and 2010-11.
We find that the impugned issue has been decided by this Tribunal in assessee’s own case in A.Y.2009-10 and 2010-11 in and 1378/Del/2017. The relevant findings of this Tribunal read as under:-
As no distinguishing decision has been brought to our notice by the DR, respectfully following the findings of this Tribunal (supra) we direct the AO to delete the addition of Rs.54,29,216/-.
In the result, the appeal filed by the assessee is allowed.
Decision announced in the open court in the presence of both the representatives on 17.08.2021.