Query- unrealised gain or loss (notional)

what is treatment under Income Tax Act of -Unrealised gain or loss (notional) entry made in books as per AS 11. Is it allowable u/s 37..?? or it will be added back to profit for deriving PGBP income...?
Replies (1)

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.

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