The AO’s view that unrealized forex loss was neither an accrued loss nor an actual loss and it does not fit into any of the criteria prescribed for allowability of an expenditure or loss as per the provisions of the Act. Part D of the Chp IV of the Act prescribes provision for computation of income under the head profits and gains from business and profession. None of the provisions of Part D of the Act specified any allowances or deductions of the unrealized forex loss computed on MTM basis by the assessee and therefore, the AO added back to the total income of the assessee.  While allowing the appeal of the Assesee the CIT(A) and Tribunal held that loss on securities marked to market, unrealised foreign exchange loss is allowable.  (AY.  2011-12)