https://www.taxtmi.com/caselaws?id=795928 Foreign exchange fluctuation loss arising on year-end restatement of an external commercial borrowing used to acquire capital assets retains a capital character. Conversion of the borrowing into equity shares does not alter the stated treatment of the loss. As the borrowing from the parent company was in the capital field, the restatement loss was treated as capital loss rather than a business-revenue expense. The notes also state that materially identical treatment had applied in the assessee's earlier assessment years, with no distinguishing facts or legal change identified. The loss is therefore not allowable as a revenue deduction. en-us Mon, 20 Jul 2026 00:00:00 +0530 Wed, 29 Jul 2026 08:21:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795928 Foreign exchange fluctuation loss arising on year-end restatement of an external commercial borrowing used to acquire capital assets retains a capital character. Conversion of the borrowing into equity shares does not alter the stated treatment of the loss. As the borrowing from the parent company was in the capital field, the restatement loss was treated as capital loss rather than a business-revenue expense. The notes also state that materially identical treatment had applied in the assessee's earlier assessment years, with no distinguishing facts or legal change identified. The loss is therefore not allowable as a revenue deduction. Case-Laws Income Tax Mon, 20 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795928