https://www.taxtmi.com/caselaws?id=425288 Open futures and options contracts were not ordinary trading stock, and their year-end position had to be reflected through mark-to-market treatment rather than by treating outstanding contracts as opening or closing stock. The addition arose from a reworking of profit that ignored the distinct nature of derivative transactions and the allowable loss from daily marking of open positions. On that basis, the adjustment was found unsustainable and deleted in favour of the assessee. The stated principle is that open derivatives contracts cannot be valued as stock for profit computation, and mark-to-market losses on such outstanding positions are allowable. en-us Thu, 02 Jun 2022 00:00:00 +0530 Wed, 20 Jul 2022 09:23:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=425288 Open futures and options contracts were not ordinary trading stock, and their year-end position had to be reflected through mark-to-market treatment rather than by treating outstanding contracts as opening or closing stock. The addition arose from a reworking of profit that ignored the distinct nature of derivative transactions and the allowable loss from daily marking of open positions. On that basis, the adjustment was found unsustainable and deleted in favour of the assessee. The stated principle is that open derivatives contracts cannot be valued as stock for profit computation, and mark-to-market losses on such outstanding positions are allowable. Case-Laws Income Tax Thu, 02 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=425288