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2021 (10) TMI 501 - AT - Income TaxMark to market loss on account of decrease in the value of closing stock - diminution in the value of stock-in-trade of equity shares - disallowance of claim as per Board circular No. 3/2010 dated 23.03.2010 and the fact that such loss is nothing but speculation loss within the meaning of Explanation to section 73 of the IT Act, 1961 - CIT-A allowed the claim - HELD THAT:- As the addition made by the A.O. w.r.t. diminution in the value of 'closing stock' of equity shares remains the same as were there before the Tribunal in the assessee's own case for preceding years [2017 (12) TMI 1815 - ITAT MUMBAI] therefore, finding no infirmity in the view taken by the CIT(A) who had followed the view taken by the Tribunal we find no reason to dislodge the well reasoned order of the CIT(A) and uphold the same. Insofar the support drawn by the A.O. from the CBDT Instruction No. 03/2010, dated 23.03.2010, to the effect that the notional loss should not be allowed is concerned, we are of the considered view that as stated by the ld. A.R., and rightly so, as the said CBDT instruction is in context of reporting of mark-to-market losses on account of forex-derivatives by an assessee, thus, the same cannot be applied to the method of valuation of closing stock of equity shares. - Decided in favour of assessee.
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