https://www.taxtmi.com/caselaws?id=796084 Derivative contracts create exposure to price movements without constituting physical inventory, so their notional contract value cannot be treated as closing stock in a capital account. Rectified audited accounts that removed such erroneous entries and prior-year loss adjustments were accepted. Unexplained losses settled in earlier years may be examined only in the years of incurrence or settlement. Section 69 applies to unexplained investments made during the relevant financial year and cannot support an addition based solely on an opening capital balance carried forward from the preceding year. The addition under section 69A was therefore unsustainable, and its deletion was upheld. en-us Wed, 22 Jul 2026 00:00:00 +0530 Fri, 31 Jul 2026 08:27:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796084 Derivative contracts create exposure to price movements without constituting physical inventory, so their notional contract value cannot be treated as closing stock in a capital account. Rectified audited accounts that removed such erroneous entries and prior-year loss adjustments were accepted. Unexplained losses settled in earlier years may be examined only in the years of incurrence or settlement. Section 69 applies to unexplained investments made during the relevant financial year and cannot support an addition based solely on an opening capital balance carried forward from the preceding year. The addition under section 69A was therefore unsustainable, and its deletion was upheld. Case-Laws Income Tax Wed, 22 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796084