https://www.taxtmi.com/caselaws?id=37453 Surplus arising on remittance of foreign currency balances after rupee devaluation was treated as a revenue receipt taxable as income, not a capital accretion. The Court held that mere retention of business profits in a foreign country does not alter their character as income, and prior assessment of those amounts was irrelevant to their treatment on remittance. Tata Locomotive was distinguished because that case involved foreign currency held for acquisition of capital goods, whereas the present funds remained business profits. Applying the principle in Hindustan Aircraft, the gain attributable to devaluation was held incidental to the business and chargeable under the relevant provision. en-us Mon, 11 Sep 1978 00:00:00 +0530 Mon, 29 Mar 2010 17:46:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37453 Surplus arising on remittance of foreign currency balances after rupee devaluation was treated as a revenue receipt taxable as income, not a capital accretion. The Court held that mere retention of business profits in a foreign country does not alter their character as income, and prior assessment of those amounts was irrelevant to their treatment on remittance. Tata Locomotive was distinguished because that case involved foreign currency held for acquisition of capital goods, whereas the present funds remained business profits. Applying the principle in Hindustan Aircraft, the gain attributable to devaluation was held incidental to the business and chargeable under the relevant provision. Case-Laws Income Tax Mon, 11 Sep 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37453