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2013 (9) TMI 895 - ALLAHABAD HIGH COURTDifference in exchange rate due to conversion of foreign currency into Indian rupee had been kept in the exchange reserve account – Taxability of credit figure in the exchange reserve account – Held that:- It is of the capital nature and is not allowable as deduction as per the ratio laid down in the case of Atlas Cycle Industries vs. CIT [2004 (2) TMI 21 - PUNJAB AND HARYANA High Court] - Also, in a different case, fluctuation in rate of exchange amounts to capital expenditure as per the ratio laid down in the case of Seshasayee Board Ltd. Vs. CIT [1997 (11) TMI 48 - MADRAS High Court] – the assessee could not provide any details as directed by the Tribunal and at the time of hearing - assets tried to submit the details before the high court - matter remanded back for reconsideration. Allowance of Interest as expenditure in which year - Assessee has taken the overdraft in the earlier years and claimed the interest payment during the assessment year under consideration – Held that:- Once the assessee has claimed the payment and debited the same then at least the same should have been allowed in any year - Once the payment is genuine and debited in the books of account, the same is allowable.
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