Loss on foreign exchange fluctuation while repaying loan taken to import machinery is capital expenditure

Kamineni Health Services (P) Ltd. Vs DCIT (ITAT Hyderabad) ITAT Hyderabad held that loss on foreign exchange fluctuation in respect of loan taken to import machinery is to be added to the cost of the asset and not allowed as revenue expenditure. Facts- The assessee is a company engaged in the business of healthcare. The case was selected for scrutiny through CASS and statutory notices u/s 143(2) and 142(1) were issued to the assessee to which the A.R of the assessee filed the requisite details from time to time. During the course of assessment proceedings, the Assessing Officer noted from the ...