https://www.taxtmi.com/caselaws?id=467808 Unrealised mark-to-market gains on outstanding forward commodity derivative contracts were held not taxable under the Income-tax Act because income tax applies only to real accrual and not to hypothetical or notional gains. The Tribunal found that gains on unexpired contracts entered to hedge gold price risk remained anticipated profits, and that mere recognition in commercial books did not create taxability without actual crystallisation. The assessment addition on account of such mark-to-market gains was therefore deleted, and the assessee succeeded. en-us Fri, 21 Mar 2025 00:00:00 +0530 Sat, 04 Apr 2026 08:51:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467808 Unrealised mark-to-market gains on outstanding forward commodity derivative contracts were held not taxable under the Income-tax Act because income tax applies only to real accrual and not to hypothetical or notional gains. The Tribunal found that gains on unexpired contracts entered to hedge gold price risk remained anticipated profits, and that mere recognition in commercial books did not create taxability without actual crystallisation. The assessment addition on account of such mark-to-market gains was therefore deleted, and the assessee succeeded. Case-Laws Income Tax Fri, 21 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467808