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2015 (5) TMI 233 - HC - Income TaxDisallowance of mark to market loss on account of close of the year in derivative transactions - ITAT allowed the claim - Held that:- The transactions in derivatives market has been taken out of the purview of "speculation transaction”. As per guidelines of SEBI, it is imperative to all who have open position, in the F&O segment on the end of the financial year i.e. 31st of march to show mark to market loss in their books of account. On the basis of the directions of the SEBI, the ICAI, which is the highest accounting body of the country, has issued necessary guidelines for the purposes of accounting mark to market losses. Thus no hesitation to hold that the losses booked on the close of the financial year in respect of open positions in futures is a crystalised liability and therefore allowable. We accordingly reverse the findings of the Ld.CIT(A) and direct the AO to allow the loss of ₹ 22,77,095/-. The view taken is in consonance with the factual materials and the guidelines so also the directions from the Securities Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India (ICA). - Decided in favour of assessee.
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