https://www.taxtmi.com/caselaws?id=339223 The ITAT Mumbai upheld the CIT(A)'s decision to delete the addition of notional gain on forward contracts, ruling that such gains should not be taxed until the contracts are settled. The tribunal emphasized adherence to accrual principles under the mercantile accounting system, directing the AO to assess the gain in subsequent years upon realization. The Revenue's appeal was dismissed, affirming the CIT(A)'s order regarding the non-taxability of notional gains on forward contracts until settlement. en-us Tue, 31 Jan 2017 00:00:00 +0530 Wed, 22 Feb 2017 12:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339223 The ITAT Mumbai upheld the CIT(A)'s decision to delete the addition of notional gain on forward contracts, ruling that such gains should not be taxed until the contracts are settled. The tribunal emphasized adherence to accrual principles under the mercantile accounting system, directing the AO to assess the gain in subsequent years upon realization. The Revenue's appeal was dismissed, affirming the CIT(A)'s order regarding the non-taxability of notional gains on forward contracts until settlement. Case-Laws Income Tax Tue, 31 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339223