https://www.taxtmi.com/caselaws?id=168774 Foreign remittances brought into British India were taxable only to the extent they represented profits and gains, not on a nominal conversion amount. The text explains that the actual taxable receipt had to reflect the exchange rate at conversion, because the commercial reality of converting foreign currency into rupees included exchange loss. That loss was treated as part of the real profit computation in an overseas money-lending business and not as a capital loss. Accordingly, the remitted sum had to be reduced by the exchange loss when computing income under the Income-tax Act, 1922, and expenditure incurred solely to earn the profits was also recognised as allowable. en-us Fri, 02 Apr 1937 00:00:00 +0530 Thu, 26 Mar 2015 12:39:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168774 Foreign remittances brought into British India were taxable only to the extent they represented profits and gains, not on a nominal conversion amount. The text explains that the actual taxable receipt had to reflect the exchange rate at conversion, because the commercial reality of converting foreign currency into rupees included exchange loss. That loss was treated as part of the real profit computation in an overseas money-lending business and not as a capital loss. Accordingly, the remitted sum had to be reduced by the exchange loss when computing income under the Income-tax Act, 1922, and expenditure incurred solely to earn the profits was also recognised as allowable. Case-Laws Income Tax Fri, 02 Apr 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168774