https://www.taxtmi.com/caselaws?id=466301 Claim for recognition of foreign currency monetary item translation gains under accounting standards was held inconsistent with the income-tax provision governing foreign currency translation, and the claim was rejected. Proportionate disallowance of interest for alleged diversion of borrowed funds was deleted because available interest-free own funds sufficed when loans to a sister concern were advanced, so no disallowance sustained. Invocation of allocations under the rule for expenses relating to exempt income cannot apply where no exempt income exists, and therefore cannot be applied. Tax-sparing credit for dividends exempt in the source state was recognised as consistent with DTAA policy to promote economic development, and allowed. en-us Fri, 12 Apr 2019 00:00:00 +0530 Thu, 29 Jan 2026 11:42:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466301 Claim for recognition of foreign currency monetary item translation gains under accounting standards was held inconsistent with the income-tax provision governing foreign currency translation, and the claim was rejected. Proportionate disallowance of interest for alleged diversion of borrowed funds was deleted because available interest-free own funds sufficed when loans to a sister concern were advanced, so no disallowance sustained. Invocation of allocations under the rule for expenses relating to exempt income cannot apply where no exempt income exists, and therefore cannot be applied. Tax-sparing credit for dividends exempt in the source state was recognised as consistent with DTAA policy to promote economic development, and allowed. Case-Laws Income Tax Fri, 12 Apr 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466301