https://www.taxtmi.com/caselaws?id=276475 Exchange gain arising on repatriation of dollars retained abroad for purchasing capital goods was treated as an accretion to fixed capital rather than revenue income. The decisive factor was the purpose for which the funds were earmarked: the dollars were specifically permitted to remain in a foreign account for acquisition of capital assets for the manufacturing business, and were not shown to have reverted to trading funds. On that basis, the surplus generated by devaluation on conversion into Indian currency did not bear the character of taxable revenue receipt. en-us Wed, 30 Aug 1961 00:00:00 +0530 Mon, 12 Nov 2018 16:57:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276475 Exchange gain arising on repatriation of dollars retained abroad for purchasing capital goods was treated as an accretion to fixed capital rather than revenue income. The decisive factor was the purpose for which the funds were earmarked: the dollars were specifically permitted to remain in a foreign account for acquisition of capital assets for the manufacturing business, and were not shown to have reverted to trading funds. On that basis, the surplus generated by devaluation on conversion into Indian currency did not bear the character of taxable revenue receipt. Case-Laws Income Tax Wed, 30 Aug 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276475