SC Dismissed SLP Against Ruling Allowing Deduction of Mark-to-Market Loss Suffered on Stock in Trade
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- Last Updated on 28 August, 2023
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Case Details: Principal Commissioner of Income-tax v. DSP Merill Lynch Capital Ltd. - [2023] 153 taxmann.com 178 (SC)
Judiciary and Counsel Details
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- Hrishikesh Roy & Pankaj Mithal, JJ.
- Vikramjit Bannerjee, A.S.G., Raj Bahadur Yadav, AOR, Yuvraj Sharma, Nidhi Khanna, Akshay Amritanshu & Ms Priyanka Das, Advs. for the Petitioner.
Facts of the Case
The Supreme Court of India has dismissed Special Leave Petition (SLP) filed by the Pr. CIT against the ruling of the High Court on issues related to the allowability of mark-to-market loss suffered on the stock in trade.
Supreme Court Held
The Apex Court held that there was no infirmity in High Court’s judgment, and thus no interference was called for.
The High Court had ruled mark-to-market loss on open equity stock future contracts was ascertained liability. Thus, the deduction of the amount on account of market loss suffered on the stock in trade was a permissible deduction in the hands of the assessee.
List of Cases Reviewed
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- Pr. CIT v. DSP Merill Lynch Capital Ltd. [2022] 142 taxmann.com 579 (Bom.) (para 5) affirmed.
List of Cases Referred to
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- United Commercial Bank v. CIT [1999] 106 Taxman 601/240 ITR 355 (SC) (para 3).
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