CESC LIMITED Vs. COMMISSIOINER OF INCOME TAX

JUDGEMENT

(1.) The following three questions at the instance of the assessee really survive for consideration in this appeal, out of the four questions referred to in the judgment of the High Court:

(2.) We are not concerned with the third question, referred to in the judgment of the High Court in this appeal by the assessee, as it has been answered by the High Court in favour of the assessee.

(3.) So far as the first question is concerned, we agree with the view expressed by the High Court. Assessment of total income in India will have to be in Indian rupees. The Company may keep its account in foreign currency. But depreciation will have to be calculated in Indian currency at the point of time of acquisition of the asset. The assessee Company maintains its accounts in pound sterling but while making assessment in India, the rupee value of the capital asset has to be taken into account for calculating its actual cost at the time of acquisition of the asset. Subsequent fluctuations in the value of pound sterling is immaterial for this purpose. Hence the first question was rightly answered by the High Court.