https://www.taxtmi.com/caselaws?id=193402 Exchange difference arising on remittance of a blocked Karachi branch balance was held not to be taxable income because the gain did not arise from a trading operation in the course of business. The relevant test was whether the profit was produced by an act done in carrying on the business, and a mere enhancement in asset value was insufficient where the funds had been sterilised, were not used in any banking operation, and remained idle until remittance was later permitted. On those facts, the accretion was fortuitous, retained a capital character, and was not assessable to income-tax. en-us Mon, 11 Dec 1961 00:00:00 +0530 Thu, 27 Jul 2017 15:34:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193402 Exchange difference arising on remittance of a blocked Karachi branch balance was held not to be taxable income because the gain did not arise from a trading operation in the course of business. The relevant test was whether the profit was produced by an act done in carrying on the business, and a mere enhancement in asset value was insufficient where the funds had been sterilised, were not used in any banking operation, and remained idle until remittance was later permitted. On those facts, the accretion was fortuitous, retained a capital character, and was not assessable to income-tax. Case-Laws Income Tax Mon, 11 Dec 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193402