S.H. Kapadia, J. - (1.) Leave granted in this special leave petition.
(2.) A short question which arises for determination in this civil appeal filed by the assessee concerns application of Section 154 of the Income Tax Act, 1961 ("1961 Act") which provides for rectification of any mistake apparent from the record by any income tax authority. It may be mentioned at this stage that the words "rectification of any mistake apparent from the record" find place in Section 254(2) of the said 1961 Act. Facts
(3.) Assessee company is engaged in the manufacture of portable generator sets in technical collaboration with Honda Motor Company, Japan. In this civil appeal, we are concerned with assessment year 1991-92. On 30.12.1991 return of income was filed by the assessee declaring nil income. During the relevant year, the assessee had taken a term loan in foreign exchange for the import of machinery. On account of fluctuation in foreign exchange rate, the liability of the assessee to repay the loan in terms of rupees went up by Rs. 7, 10,910. By referring to the provisions of Section 43A, the assessee enhanced the figure of W.D.V. (written down value) of the block of assets and claimed depreciation accordingly. The A.O. came to the conclusion that such revision in the actual cost was not admissible as Section 43A refers to adjustment qua the actual cost of the machinery on account of increase or decrease in the liability of unpaid loans utilized for the purchase of machinery.;