https://www.taxtmi.com/caselaws?id=77170 The High Court upheld the Tribunal's decision that a loss incurred due to foreign exchange rate fluctuation by an assessee who borrowed in foreign exchange for business activities should be treated as a revenue loss, not a capital loss. The Court emphasized the utilization of the loan amount at the time of devaluation, determining it had changed character to become circulating capital. Relying on previous decisions and legal principles, the Court dismissed the Revenue's appeal, finding no substantial question of law. The judgment clarifies the treatment of such losses, highlighting the significance of loan utilization in classification as revenue or capital loss. en-us Wed, 23 Apr 2008 00:00:00 +0530 Sat, 02 Feb 2013 14:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=77170 The High Court upheld the Tribunal's decision that a loss incurred due to foreign exchange rate fluctuation by an assessee who borrowed in foreign exchange for business activities should be treated as a revenue loss, not a capital loss. The Court emphasized the utilization of the loan amount at the time of devaluation, determining it had changed character to become circulating capital. Relying on previous decisions and legal principles, the Court dismissed the Revenue's appeal, finding no substantial question of law. The judgment clarifies the treatment of such losses, highlighting the significance of loan utilization in classification as revenue or capital loss. Case-Laws Income Tax Wed, 23 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=77170