KPMG-Senior Consultant-International Tax
236 Points
Joined September 2008
Un realized gain / loss on revenue items like purchase, sales, expenditure are allowed items if consistency in accounting and tax treatment is followed. However, un realized gaon / loss on capital items like exchange diffrence on loans used for fixed asset purchase, investment in other companies, group companies are not an allowed item. You will get even supreme court rulings in this case, its a well settled case.