Law:

Section:

Section 145 of the I ncome-tax Act, 1961-Method of accounting-Assessee, a sterling company registered in UK, carried on business in India but maintained its accounts in sterling in UK- Its accounts in India were maintained in rupees but with parallel entries in sterling and results were incorporated in sterling in UK accounts-Whether such maintenance of accounts in sterling amounted to method of accounting within the meaning of section 145-H eld, on facts, no Section 43(6) of the I ncome-tax Act, 1961-Written down value-Assessee acquired fixed assets in India value of which was expressed in sterling at the rate of 1s 6d equivalent to rupee one-I ndian rupee devalued with effect from 6-6-1966 and rate of exchange became R s. 21 for 1 pound-for assessment years 1967-68 to 1970-71, assessee claimed depreciation on written down sterling value of assets as appearing in depreciation schedule prior to devaluation-ITO accepted assessee's computation and allowed depreciation by applying post-devaluation rate of exchange-Additional commissioner directed him to allow depreciation after determining written down value of assets by converting sterling at pre-devaluation exchange rate-W hether written down value of fixed assets should be determined on the basis of rate with reference to date of acquisition of assets- Held, on facts, yes Facts The assessee, a sterling company incorporated in the UK with its registered office in England, maintained its accounts in sterling in the UK. It carried on business exclusively in India and maintained its accounts in India in rupee with parallel entries in sterling at the appropriate rate of exchange for incorporation of the results of the business in the accounts maintained in the UK. Its fixed assets were largely acquired by it in India, the value of which was expressed in sterling at the exchange rate of 1s 6d equivalent to rupee one. The Indian rupee was devalued with effect from 6-6-1966 and the exchange rate of one pound became Rs. 21. On the devaluation of the rupee, the assessee revalued its fixed assets by appropriately reducing their original cost and also made corresponding adjustments in sterling accounts in the depreciation…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492