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TMI Blog2014 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... arose merely due to conversion of the currency of one country into the currency of another country - The gain is on capital account and not in the nature of income - If the Notes were issued for meeting capital expenditure, and remained outside India, the taxability has to be determined at the point of time when the profit arose - Their subsequent utilization was not relevant - the failure of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ising out of the question projected as a substantial question of law, is with regard to the use of repatriated funds. 3] The factual position and which appears to be undisputed is that the return of income along with statutory audit report were filed by the respondentassessee on 31st October, 2001 declaring a certain income. Subsequently the revised return was filed on 26th March, 2003. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies intended to expand their generating capacity to meet the growing demand of their existing customers as well as to add new direct customers in the License area. The entire proceeds raised abroad were held in interest for a period of 3 years pending deployment and utilization. During the year ended 31st March, 2001, the funds were repatriated to India as per the requirement of Reserve Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeting capital expenditure, and remained outside India, the taxability has to be determined at the point of time when the profit arose. Their subsequent utilization was, therefore, not relevant. It is in that regard that the failure of the assessee to explain the utilization of the funds repatriated was held to be a factor not against the assessee. The facts of the case, therefore, justified the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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