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2012 (11) TMI 544 - AT - Income TaxRevenue expenditure versus capital expenditure - application of AS-11 - foreign exchange loss on conversion of rupee term into foreign currency loan - Held that:- Foreign Exchange Loan was taken in connection with conversion of a rupee term loan into a foreign currency loan. The purpose of the loan was for purchase of machinery which is on capital account. Therefore, the sum in question cannot be claimed as deduction. The sum in question cannot also be capitalised to the value of the machinery for the reason that the machinery has already been put to use - Decided against the assessee. The decision of the Hon’ble Supreme Court in the case of Woodward Governor India Pvt.Ltd. [2009 (4) TMI 4 - SUPREME COURT] would apply only in respect of exchange fluctuation on loans taken for revenue purposes.
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