MTM loss is an actual and ascertained liability

M/s Himadri Chemicals & Industries Ltd. Vs Pr. CIT (ITAT Kolkata)

Ordinarily under the mercantile system of accounting, expenditure is deductible when the liability to settle the same is accrued, irrespective of whether it is ‘due’ or not. However, in the case of a contingent liability, there is no present existence to discharge the same ; it is payable only when the contingency occurs. A contingent liability is essentially a conditional liability which is uncertain and may or may not materialise. Th

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