(Hrishikesh Roy and Pankaj Mithal, JJ.)
Special Leave Petition (Civil) Diary No(s). 32784/2022, decided on July 10, 2023
Principal Commissioner of Income Tax 3 Mumbai _______ Petitioner;
v.
DSP Merill Lynch Capital Ltd. _____________________ Respondent.
(For Admission and I.R. and IA No. 167367/2022-Condonation of Delay in Filing)
Special Leave Petition (Civil) Diary No(s). 32784/2022; ITA No. 1470/2017; and IA No. 167367/2022
The Order of the court was delivered by
Order
1. Delay condoned.
2. Heard Mr. Vikramjit Bannerjee, the learned ASG appearing for the petitioner.
3. The Commissioner of Income Tax (Appeals) has held that marked to market loss on open equity stock future contracts, is a permissible deduction in the hands of the assessee. The resultant challenge by the Revenue was rejected by the Income Tax Appellate Tribunal (ITAT) on 21.12.2016. The ITAT had specifically rejected the Department’s contention that the market loss of stock in trade, is not an ascertained liability. Thereby deduction of the amount, on account of the market loss suffered on stock in trade, was held in favour of the assessee. To reach such finding, the ITAT had relied on United Commercial Bank, Calcutta v. Commissioner of Income Tax, W.B.-III, Calcutta reported in (1999) 8 SCC 338.
4. We have considered the reasoning of both the forums. Upon reading the High Court’s impugned judgment, no infirmity is seen. As such, no interference is called for in the present matter.
5. Accordingly, the Special Leave Petition stands dismissed.
6. Pending application(s), if any, stands closed.
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