https://www.taxtmi.com/caselaws?id=235197 The ITAT upheld the CIT(A)'s decision to allow the mark-to-market loss claimed by the assessee in derivative transactions. The Tribunal considered derivative contracts as stock-in-trade, valuing them at cost or market price, whichever is lower. The consistent accounting practice of recognizing losses but not unrealized profits was deemed appropriate. The appeal of the revenue was dismissed, emphasizing the recognition of anticipated losses in valuing closing stock, while profits should only be recognized when realized. en-us Fri, 03 May 2013 00:00:00 +0530 Wed, 15 May 2013 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235197 The ITAT upheld the CIT(A)'s decision to allow the mark-to-market loss claimed by the assessee in derivative transactions. The Tribunal considered derivative contracts as stock-in-trade, valuing them at cost or market price, whichever is lower. The consistent accounting practice of recognizing losses but not unrealized profits was deemed appropriate. The appeal of the revenue was dismissed, emphasizing the recognition of anticipated losses in valuing closing stock, while profits should only be recognized when realized. Case-Laws Income Tax Fri, 03 May 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235197