Assessee-company received advance subscription from a non-resident shareholder towards rights issue, which was later treated as external commercial borrowing (ECB) due to non-obtaining of Government permission. Foreign exchange fluctuation loss on these funds was claimed as revenue expenditure and allowed in assessment. Commissioner invoked section 263, contending that the loss should be treated as capital in nature, as funds were initially received for expansion of the capital base. Tribunal quashed the revision order.  On appeal, the Court held that since a portion of the funds had been utilized for revenue expenses, including excise duty payments, and similar treatment had been accepted by the Commissioner in the previous assessment year. The assessee-company had debited Brand Development Expenses and also foreign fluctuations, which were allowed by the Assessing Officer. Commissioner set aside the order of the Assessing Officer. Tribunal set aside the order of the Commissioner. On appeal, the High Court affirmed the order of the Tribunal. (AY. 2002-03)