https://www.taxtmi.com/caselaws?id=23650 Excess foreign exchange payments arising on deferred instalments for machinery acquired as capital assets are treated as capital expenditure, not revenue outgo. The settled principle applied is that additional cost incurred in meeting the purchase price of capital goods, or liability directly linked to their acquisition, retains the same capital character even if foreign currency fluctuation increases the amount payable. On that basis, the fluctuation excess was held not deductible in computing income. en-us Wed, 27 Sep 1989 00:00:00 +0530 Wed, 23 Dec 2009 10:40:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23650 Excess foreign exchange payments arising on deferred instalments for machinery acquired as capital assets are treated as capital expenditure, not revenue outgo. The settled principle applied is that additional cost incurred in meeting the purchase price of capital goods, or liability directly linked to their acquisition, retains the same capital character even if foreign currency fluctuation increases the amount payable. On that basis, the fluctuation excess was held not deductible in computing income. Case-Laws Income Tax Wed, 27 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23650