https://www.taxtmi.com/caselaws?id=408713 Foreign exchange fluctuation loss on FCCBs was treated as revenue expenditure where the liability was recognised under AS-11, and the fact that the asset was non-depreciable did not make the loss capital in nature. Exchange fluctuation linked to indigenous depreciable assets could be absorbed in the asset cost for depreciation, since section 43A applies only to assets acquired from outside India, and withdrawal of depreciation was set aside. In the absence of dividend income, disallowance under section 14A read with Rule 8D could not be sustained. Buyback of FCCBs at a discount, where the proceeds had been used for capital purposes, was treated as a capital receipt and not taxable as income under section 28(iv) or section 41(1). en-us Tue, 15 Jun 2021 00:00:00 +0530 Thu, 16 Sep 2021 16:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=408713 Foreign exchange fluctuation loss on FCCBs was treated as revenue expenditure where the liability was recognised under AS-11, and the fact that the asset was non-depreciable did not make the loss capital in nature. Exchange fluctuation linked to indigenous depreciable assets could be absorbed in the asset cost for depreciation, since section 43A applies only to assets acquired from outside India, and withdrawal of depreciation was set aside. In the absence of dividend income, disallowance under section 14A read with Rule 8D could not be sustained. Buyback of FCCBs at a discount, where the proceeds had been used for capital purposes, was treated as a capital receipt and not taxable as income under section 28(iv) or section 41(1). Case-Laws Income Tax Tue, 15 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=408713