https://www.taxtmi.com/caselaws?id=37773 Additional liability arising on repayment of a foreign currency loan due to devaluation was treated as capital in nature because it was referable to the loan principal itself and the borrowing obligation, not to revenue expenditure incurred for business operations. The court held that the exchange loss affected the capital structure of the borrowing and was not deductible as business expenditure or business loss under section 37(1). For the same reason, it was also not allowable in computing chargeable profits under the Companies (Profits) Surtax Act. en-us Mon, 18 Sep 1978 00:00:00 +0530 Thu, 01 Apr 2010 10:30:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37773 Additional liability arising on repayment of a foreign currency loan due to devaluation was treated as capital in nature because it was referable to the loan principal itself and the borrowing obligation, not to revenue expenditure incurred for business operations. The court held that the exchange loss affected the capital structure of the borrowing and was not deductible as business expenditure or business loss under section 37(1). For the same reason, it was also not allowable in computing chargeable profits under the Companies (Profits) Surtax Act. Case-Laws Income Tax Mon, 18 Sep 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37773