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2004 (4) TMI 10 - DELHI HIGH COURTBusiness expenditure - deduction u/s 37 - non-resident - "1. Whether, Tribunal is correct in holding that the expenditure incurred by the non-resident assessee in converting its rupee earnings into foreign currency for remittance abroad under the terms of the agreement with its Indian collaborators is an admissible business expenditure? 2. Whether, Tribunal is correct in holding that the expenditure incurred by the assessee for remittance abroad of income earned in India is laid out wholly and exclusively for the purpose of its business and is an admissible deduction under section 37?" - After the income is received, it becomes capital and for transferring the same on account of fluctuation in exchange rate, the loss occasioned cannot be treated as business expenditure – Hence, we answer question No. 1 in favour of the Revenue - question No. 2 is not required to be examined.
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