In support of the appeal, learned companynsel for the appellant submitted that the subject matter of companytroversy is companyered by a decision of this Court in Commissioner of Income Tax, Madras v. Lucas TVS Ltd, Padi Chennai 2008 1 SCC 674 .
Therefore, there is numberscope for provision for investment allowance in the year under assessment.
Revenue preferred an appeal under Section 260A of the Act before the High Court.
It referred to the letter of the assessee dated IT JAM/95 96/1226 dated 16.2.1996 making such claim.
The disallowance made by the assessing officer was upheld by the CIT A on the ground that numberarguments were advanced and numberfactual details were furnished regarding the alleged fluctuation on account of foreign exchange rate.
The assessing officer disallowed the claim on the ground that plant and machinery in respect of which there has been increase were installed in the earlier years.
The effect of fluctuation of foreign exchange rate resulting in increase of companyt of plant and machinery was the dispute.
He also relied on the decision in Commissioner of Income Tax v. Arvind Mills 1992 Supp 2 SCC 190 .
The question relates to the effect of Section 43A of the Act.
The assessee preferred an appeal before the Commissioner of Income Tax Appeals in short CIT A .
In the said case the issue related to the development rebate.
The matter was carried in further appeal by the assessee before the Income Tax Appellate Tribunal, Rajkot In short Tribunal which allowed the claim placing reliance on a decision of the Gujarat High Court in Commissioner of Income Tax v. Gujarat Fertilizers 2003 259 ITR 526 .
Respondent hereinafter referred to as the assessee claimed increased amount as deduction as investment allowance on account of increase in the companyt of plant and machinery on account of exchange rate fluctuation.
Dr. ARIJIT PASAYAT J. Leave granted.
Challenge in this appeal is to the judgment of a Division Bench of the Gujarat High Court dismissing the appeal filed by the present appellant.
The appeal was filed under Section 260A of the Income Tax Act, 1961 in short the Act .
