https://www.taxtmi.com/caselaws?id=16990 Exchange fluctuation loss and related interest on long-term loans used to acquire plant and machinery were held not deductible, because the assessee had treated the interest component as capital in one context and could not reclassify the same expenditure as revenue for deduction. The Madras HC applied the principle that an item of outgo cannot be given a capital character for one purpose and a revenue character for another, and followed earlier decisions rejecting such treatment. The claim was therefore disallowed in computing total income. en-us Thu, 28 Mar 1996 00:00:00 +0530 Mon, 14 Sep 2009 15:03:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16990 Exchange fluctuation loss and related interest on long-term loans used to acquire plant and machinery were held not deductible, because the assessee had treated the interest component as capital in one context and could not reclassify the same expenditure as revenue for deduction. The Madras HC applied the principle that an item of outgo cannot be given a capital character for one purpose and a revenue character for another, and followed earlier decisions rejecting such treatment. The claim was therefore disallowed in computing total income. Case-Laws Income Tax Thu, 28 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16990