https://www.taxtmi.com/caselaws?id=787466 Unrealized fair valuation loss on principal protected benchmark linked debentures recognised on an accrual (mercantile) basis is treated as an allowable expenditure under the general deduction principle where the contractual obligation to pay principal exists at the balance sheet date; the uncertainty relates only to the quantum contingent on future index performance. The analysis applies mark to market valuation and principles of crystallization of liability and prudent accounting, permitting recognition of estimable losses and later reversal if valuations change, thereby distinguishing such losses from purely contingent liabilities. en-us Thu, 05 Feb 2026 00:00:00 +0530 Fri, 06 Mar 2026 08:30:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787466 Unrealized fair valuation loss on principal protected benchmark linked debentures recognised on an accrual (mercantile) basis is treated as an allowable expenditure under the general deduction principle where the contractual obligation to pay principal exists at the balance sheet date; the uncertainty relates only to the quantum contingent on future index performance. The analysis applies mark to market valuation and principles of crystallization of liability and prudent accounting, permitting recognition of estimable losses and later reversal if valuations change, thereby distinguishing such losses from purely contingent liabilities. Case-Laws Income Tax Thu, 05 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787466