Dismissing the appeal of the revenue the Court held that, the Tribunal was justified in allowing the claim of depreciation on foreign exchange fluctuation which showed notional fluctuation.Adjustment can be made at each date of balance-sheet pending actual payment. ( AY.1993 -94)
CIT v. Phonex Lamps India Ltd. (2018) 406 ITR 550 (All) (HC)
S. 43A : Rate of exchange – Actual cost- Depreciation- Notional fluctuation- Imported assets acquired in foreign currency — Fluctuation in rate of exchange — Adjustment can be made at each date of balance-sheet pending actual payment. [ S.32 ]