https://www.taxtmi.com/caselaws?id=7572 A foreign currency balance representing unremitted profits credited to an assessee in Karachi was treated as a capital asset once the profits had been accounted for and taxed, and there was no proof that the fund was held for trading purposes. On that basis, the loss arising from devaluation of the Pakistani currency was not an allowable business loss, because the diminution reflected only a fall in the value of a capital asset. The alternative claim as a bad debt also failed, since the relationship was principal and agent, not debtor and creditor, and the amount had not become bad in the commercial sense. en-us Tue, 17 Jun 1969 00:00:00 +0530 Mon, 02 Mar 2009 13:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7572 A foreign currency balance representing unremitted profits credited to an assessee in Karachi was treated as a capital asset once the profits had been accounted for and taxed, and there was no proof that the fund was held for trading purposes. On that basis, the loss arising from devaluation of the Pakistani currency was not an allowable business loss, because the diminution reflected only a fall in the value of a capital asset. The alternative claim as a bad debt also failed, since the relationship was principal and agent, not debtor and creditor, and the amount had not become bad in the commercial sense. Case-Laws Income Tax Tue, 17 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7572