Foreign exchange fluctuation gain on redemption of shares at par is not taxable as capital gain

Havells India Ltd vs ACIT (ITAT Delhi) Facts of the case The appellant company is engaged in the business of manufacturing of switchgears, energy meters, cables & wires, electrical fans, compact fluorescent lamp and related components and trading luminaries, lighting fixtures and exhaust During the Financial Year (FY) 2007-08, corresponding to Assessment Year (AY) 2008-09, the taxpayer (amongst others) had invested in the shares of one its overseas subsidiary company. Some of the shares were redeemed at par in the same year e. FY 2007-08. The taxpayer had realized foreign exchange gain o...