can the foreign exchange loss/gain to be taken for valuation of closing stock
This query is : Resolved
PARSURAM BAISAKH
(Querist)
13 February 2008
The assessee is a limited company and incurred huge foreign exchange loss on purchase of raw materials in the year 2002-03.Is it required the above loss to be considered for valuation of the raw material for calculation of proft/loss under income tax act 1961.Kindly give emphasis on Judicial case law under income tax act.
PARSURAM BAISAKH
(Querist)
13 February 2008
0
S.Srinivasaraghavan
(Expert)
15 February 2008
The exchange loss on purchase of material will be recognised as a revenue loss. It can not be taken for valuation.
S.Srinivasaraghavan
(Expert)
07 March 2008
This goes by the principle of coservative approach.
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