https://www.taxtmi.com/forum/issue?id=1506 Issue: whether exchange loss on restatement of a foreign currency loan taken to acquire land, building and indigenous machinery is capital or revenue in character. If capital, the loss may be capitalised as part of asset cost under the capitalisation rule; if revenue, it may be deductible. Section 43A was noted as inapplicable to indigenous machinery here, creating uncertainty whether a capital-account exchange loss not covered by that provision is disallowed or must be assessed by economic substance and use of funds. en-us Thu, 17 Sep 2009 18:44:43 +0530 Thu, 23 Jan 2025 15:58:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1506 Issue: whether exchange loss on restatement of a foreign currency loan taken to acquire land, building and indigenous machinery is capital or revenue in character. If capital, the loss may be capitalised as part of asset cost under the capitalisation rule; if revenue, it may be deductible. Section 43A was noted as inapplicable to indigenous machinery here, creating uncertainty whether a capital-account exchange loss not covered by that provision is disallowed or must be assessed by economic substance and use of funds. Discussion-Forum Income Tax Thu, 17 Sep 2009 18:44:43 +0530 https://www.taxtmi.com/forum/issue?id=1506