Brief of the Case
In the present facts of the Case the Hon’ble Tribunal completely relied on the Judgment of M/s. Indsec Securities & Finance Ltd., ITA No. 4236/M/2012, where it was observed that Derivatives are also Stock-in-trade and accordingly the valuation will be done.
Facts of the Case
In the present facts of the Case, the Ld. CIT(A) have deleted the addition of Rs. Rs.8,55,86,854/- made on account of mark to market loss claimed on account of trading in derivative transactions where the actual loss or the profit in respect of such derivative transaction would have to get crystallized only at the time of settlement of such transaction.
Contention of the Assessee
The Ld. Counsel for the Assessee submitted that the issue is clearly covered by the Judgement of M/s. Indsec Securities & Finance Ltd., ITA No. 4236/M/2012 where it was held that not only actual stock but derivatives could also be taken into stock in trade and the principle “cost or market price whichever is lower” will be applied.
Contention of the Revenue
According to the Judgement of the Hon’ble Tribunal in para 4 where it has been observed that the Revenue have not submitted any contrary facts or case laws which may justify departure from the above observations made by the Tribunal.
