https://www.taxtmi.com/caselaws?id=248975 The High Court affirmed the Tribunal's decision that the profit on foreign exchange arising from the repatriation of certificates of deposits was on capital account, not taxable income. The purpose for which the funds were raised, i.e., capital expenditure, was crucial in determining taxability. The Court held that the profit arose upon repatriation to India, regardless of subsequent utilization, and dismissed the appeal. The judgment emphasized the importance of the purpose of fund-raising in assessing tax liability and rejected the argument that mere entry in the Profit and Loss Account alters the nature of the receipt. en-us Wed, 11 Jun 2014 00:00:00 +0530 Tue, 01 Jul 2014 08:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=248975 The High Court affirmed the Tribunal's decision that the profit on foreign exchange arising from the repatriation of certificates of deposits was on capital account, not taxable income. The purpose for which the funds were raised, i.e., capital expenditure, was crucial in determining taxability. The Court held that the profit arose upon repatriation to India, regardless of subsequent utilization, and dismissed the appeal. The judgment emphasized the importance of the purpose of fund-raising in assessing tax liability and rejected the argument that mere entry in the Profit and Loss Account alters the nature of the receipt. Case-Laws Income Tax Wed, 11 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=248975