https://www.taxtmi.com/caselaws?id=789126 Unrealised mark-to-market gains on forward commodity contracts are taxable only when income is actually received, deemed received, or has really accrued; anticipated profit alone is not enough. Even under the mercantile system, commercial accounting entries do not make a hypothetical gain taxable if there is no actual accrual or realisation. Applying the real income doctrine, the analysis treats fluctuation in contract value as non-taxable until maturity or actual accrual, unless a statutory provision clearly overrides that principle. On that basis, the assessed addition was deleted and the assessee's treatment of the unrealised derivative gains was sustained. en-us Wed, 11 Mar 2026 00:00:00 +0530 Fri, 03 Apr 2026 08:49:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789126 Unrealised mark-to-market gains on forward commodity contracts are taxable only when income is actually received, deemed received, or has really accrued; anticipated profit alone is not enough. Even under the mercantile system, commercial accounting entries do not make a hypothetical gain taxable if there is no actual accrual or realisation. Applying the real income doctrine, the analysis treats fluctuation in contract value as non-taxable until maturity or actual accrual, unless a statutory provision clearly overrides that principle. On that basis, the assessed addition was deleted and the assessee's treatment of the unrealised derivative gains was sustained. Case-Laws Income Tax Wed, 11 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789126