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“marked to market loss”

ICDS & AccountingICDS VIICDS VI49 judgments

The decision most relied on for marked to market loss is DCIT v. Bank of Bahrain & Kuwait (41 SOT 290), cited in 81 judgments on BharatTax.

Leading authorities on marked to market loss

DCIT v. Bank of Bahrain & Kuwait
41 SOT 290 · 2010 · ITAT
81
citing judgments

Mark-to-Market (MTM) losses on forward contracts and forex derivatives are allowable as a revenue deduction under Section 37(1) where a binding obligation is created against the assessee. This is provided the assessee consistently follows the same accounting method for both profits and losses.

Oil & Natural Gas Corpn. Ltd. v. Dy. CIT
83 ITD 151 · 2002 · ITAT
29
citing judgments

Fluctuations in foreign exchange currency, accounted for at the end of the accounting year using a consistent accounting system, are not notional losses and are therefore deductible. The loss accrues at the time of valuation, not solely upon remittance or repayment.

CIT v. D. Chetan & Co.
390 ITR 36 · 2017 · High Court
26
citing judgments

Losses on foreign exchange forward contracts are not speculative if they are entered into to cover variations in foreign exchange rates impacting import/export business. Such losses are considered business losses and not notional.

Indian Overseas Bank Ltd. v. CIT
246 ITR 206 · 2002 · High Court
16
citing judgments

Notional foreign exchange loss on unsettled forward contracts is not allowable as a deduction. The loss is allowable only upon settlement of the contract.

Reliance Industries Limited v. CIT
40 Taxmann.com 431 · 2013 · ITAT
16
citing judgments

Mark-to-market losses are allowable as deductions. The disallowance of such losses by the Assessing Officer is deleted.

Judgments citing marked to market loss

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 507/CHNY/2018[2012-13]Status: DisposedITAT Chennai29 May 2024AY 2012-13

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

appeal for assessment year 2012- 13 is as regards to the order of CIT(A) confirming the action of the AO in disallowing marked to market loss arising on ECB loans and loss arising due to hedging exposures related to commitments on sales and purchases. For this, assessee has raised ... following Ground No.2:- 2. Disallowance of Marked to Market Losses ('MTM') - Rs. 2,17,16,894 The Hon'ble CIT(A) has erred in disallowing an amount of Rs. 2,17, 16,894 on account of MTM losses break-up of the which is as follows: S.No. Particulars Amount

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 506/CHNY/2018[2011-12]Status: DisposedITAT Chennai29 May 2024AY 2011-12

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

appeal for assessment year 2012- 13 is as regards to the order of CIT(A) confirming the action of the AO in disallowing marked to market loss arising on ECB loans and loss arising due to hedging exposures related to commitments on sales and purchases. For this, assessee has raised ... following Ground No.2:- 2. Disallowance of Marked to Market Losses ('MTM') - Rs. 2,17,16,894 The Hon'ble CIT(A) has erred in disallowing an amount of Rs. 2,17, 16,894 on account of MTM losses break-up of the which is as follows: S.No. Particulars Amount

Titan Company Limited 9Earstwhile Known As Titan Industries Limited), Krishnagiri vs. ACIT Ltu 1, Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 505/CHNY/2018[2010-11]Status: DisposedITAT Chennai29 May 2024AY 2010-11

Bench: Shri Mahavir Singhand Shri Amitabh Shukla

For Appellant: Shri T. Surya Narayana, AdvocateFor Respondent: Shri A. Sasikumar, CIT
Section 143(3)

appeal for assessment year 2012- 13 is as regards to the order of CIT(A) confirming the action of the AO in disallowing marked to market loss arising on ECB loans and loss arising due to hedging exposures related to commitments on sales and purchases. For this, assessee has raised ... following Ground No.2:- 2. Disallowance of Marked to Market Losses ('MTM') - Rs. 2,17,16,894 The Hon'ble CIT(A) has erred in disallowing an amount of Rs. 2,17, 16,894 on account of MTM losses break-up of the which is as follows: S.No. Particulars Amount

DCIT, Circle-8(1), Kolkata vs. Itc Limited, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1223/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

against the order of Ld. CIT(A) deleting the addition made by AO of Rs. 99,96,000/- on account of marked to market loss on forward contracts. 38. Facts in brief are that the assessee claimed exchange fluctuation loss of Rs. 99,96,000/- in the profit and loss ... account on account of marked to market loss at the year end which relates to outstanding forward contracts and the foreign currency receivable/payable which were revenue in nature. The AO while relying upon CBDT’s Instruction No. 3/2010 dated 28.09.2010 disallowed the loss on account of market to market revaluation

DCIT, Circle-8(1), Kolkata vs. Itc Limited, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1222/KOL/2017[2010-11]Status: DisposedITAT Kolkata10 May 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

against the order of Ld. CIT(A) deleting the addition made by AO of Rs. 99,96,000/- on account of marked to market loss on forward contracts. 38. Facts in brief are that the assessee claimed exchange fluctuation loss of Rs. 99,96,000/- in the profit and loss ... account on account of marked to market loss at the year end which relates to outstanding forward contracts and the foreign currency receivable/payable which were revenue in nature. The AO while relying upon CBDT’s Instruction No. 3/2010 dated 28.09.2010 disallowed the loss on account of market to market revaluation

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1166/KOL/2017[2011-12]Status: DisposedITAT Kolkata10 May 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

against the order of Ld. CIT(A) deleting the addition made by AO of Rs. 99,96,000/- on account of marked to market loss on forward contracts. 38. Facts in brief are that the assessee claimed exchange fluctuation loss of Rs. 99,96,000/- in the profit and loss ... account on account of marked to market loss at the year end which relates to outstanding forward contracts and the foreign currency receivable/payable which were revenue in nature. The AO while relying upon CBDT’s Instruction No. 3/2010 dated 28.09.2010 disallowed the loss on account of market to market revaluation

Itc Limited, Kolkata vs. ACIT, Range-8, Kolkata

In the result appeals of the assessee are partly allowed for statistical purposes and the appeals of the revenue are dismissed

ITA 1068/KOL/2017[2010-11]Status: DisposedITAT Kolkata10 May 2024AY 2010-11

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 115JSection 143(1)Section 37

against the order of Ld. CIT(A) deleting the addition made by AO of Rs. 99,96,000/- on account of marked to market loss on forward contracts. 38. Facts in brief are that the assessee claimed exchange fluctuation loss of Rs. 99,96,000/- in the profit and loss ... account on account of marked to market loss at the year end which relates to outstanding forward contracts and the foreign currency receivable/payable which were revenue in nature. The AO while relying upon CBDT’s Instruction No. 3/2010 dated 28.09.2010 disallowed the loss on account of market to market revaluation

M/S. La Opala RG Ltd., Kolkata vs. DCIT, Cir-12(1), Kolkata.

In the result, both the appeals of the assessee are partly allowed

ITA 965/KOL/2023[2014-15]Status: HeardITAT Kolkata03 Apr 2024AY 2014-15

Bench: Shri Rajpal Yadav & Shri Girish Agrawal

For Appellant: Shri A. K. Tulsiyan, FCAFor Respondent: Shri Prabhakar Prakash Ranjan, Addl. CIT
Section 143(3)Section 250Section 80l

interest expenses has been disallowed which in our view is not justified. Also the claim of the assessee is not notional or marked to market loss but actual premium paid by it for entering into forward contracts for hedging exchange fluctuation in servicing foreign currency loan. It is also

M/S. La Opala RG Ltd., Kolkata vs. DCIT, Cir-12(1), Kolkata-12(1), Kol., Kolkata

In the result, both the appeals of the assessee are partly allowed

ITA 964/KOL/2023[2013-14]Status: HeardITAT Kolkata03 Apr 2024AY 2013-14

Bench: Shri Rajpal Yadav & Shri Girish Agrawal

For Appellant: Shri A. K. Tulsiyan, FCAFor Respondent: Shri Prabhakar Prakash Ranjan, Addl. CIT
Section 143(3)Section 250Section 80l

interest expenses has been disallowed which in our view is not justified. Also the claim of the assessee is not notional or marked to market loss but actual premium paid by it for entering into forward contracts for hedging exchange fluctuation in servicing foreign currency loan. It is also

Concept Images Pvt. Ltd., Kolkata vs. DCIT, Cir-7(1), Kolata., Kolkata

In the result, the appeal of the assessee stands allowed

ITA 1201/KOL/2023[2012-13]Status: DisposedITAT Kolkata22 Mar 2024AY 2012-13

Bench: Shri Sanjay Garg & Rajesh Kumari.T.A No.1201/Kol/2023 Assessment Year: 2012-13 Concept Images Pvt. Ltd…………………………… ........................……Appellant 4Th Floor, Azimganj House, 7, Camac Street, Circus Avenue, S.O., Kolkata – 700017. [Pan: Aabcc1959L] Vs. Dcit, Circle-7(1), Kolkata...................…................…........……...…..…..Respondent Appearances By: Shri Anil Kochar, Advocate, Appeared On Behalf Of The Appellant. Shri Ankur Goyal, Jcit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 10, 2024 Date Of Pronouncing The Order : March 22, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 19.10.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Sole Issue Raised In This Appeal Is As To Marked To Market Loss Incurred By The Assessee On Hedging Of The Transaction Is To Be Treated As Speculative Loss Or Normal Business Loss. 3. The Brief Facts Of The Case Are That The Assessee Is In Business Of Purchase & Sale Of Bullions & Also Manufacturers Of Gold Ornaments. Since The Price Of Gold Constantly Fluctuates, To Safeguard Itself From Loss, If Any, Due To Fluctuation The Appellant Had Entered Into Future Contracts With The Suppliers Of Gold To Safeguard Against Loss

Section 250Section 37Section 43(5)

Income Tax Act (hereinafter referred to as the ‘Act’). 2. The sole issue raised in this appeal is as to marked to market loss incurred by the assessee on hedging of the transaction is to be treated as speculative loss or normal business loss. 3. The brief facts

Ambicaa Sales Corporation, Bengaluru vs. Principal Commissioner of Income Tax Bengaluru - 5, Bengaluru

In the result, the appeal by the assessee is partly allowed

ITA 726/BANG/2023[2014-15]Status: DisposedITAT Bangalore18 Jan 2024AY 2014-15

Bench: Shri George George K. & Shri Laxmi Prasad Sahuassessment Year : 2014-15

For Appellant: Shri Balram R. Rao, AdvocateFor Respondent: Shri D.K. Mishra, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 263Section 43

account of marked to market of open derivative contracts as on 31.3.2014 or not and to decide the allowability of such marked to market loss as per law. The Assessing Officer failed to carry out any such investigation. ii) It is seen that you had also claimed losses from Rate

Deputy Commissioner of Income Tax, Central Circle -3(2), Mumbai vs. Viraj Profiles Private Limited, Mumbai

In the result, appeal filed by the assessee is partly allowed as per above directions

ITA 2164/MUM/2023[2020-21]Status: DisposedITAT Mumbai20 Dec 2023AY 2020-21

Bench: Shri Narender Kumar Choudhry, Hon’Ble & Shri S. Rifaur Rahman, Hon'Bleviraj Profiles Pvt Ltd V. Dy. Cit - Central Circle- 3(2) (Formerly Known As Viraj Profiles Limited) Room No. 1923, 19Th Floor 1St Floor, Viraj Towers Air India Building Jn Of Andheri Kurla Road Nariman Point W.E. Highway, Andheri (E) Mumbai- 400021 Mumbai- 400093 Pan: Aabcv1740N (Appellant) (Respondent) Dy. Cit - Central Circle- 3(2) V. Viraj Profiles Pvt Ltd (Formerly Known As Viraj Profiles Limited) Room No. 1923, 19Th Floor 1St Floor, Viraj Towers Air India Building, Nariman Jn Of Andheri Kurla Road Point W.E. Highway, Andheri (E) Mumbai- 400021 Mumbai- 400093 Pan: Aabcv1740N (Appellant) (Respondent) Assessee Represented By : Shri. Mani Jain Department Represented By : Shri. Ujjawal Kumar Chavan

Section 250Section 37Section 80G

Accordingly, ground raised by the revenue is dismissed. 13. With regard to Ground No. 5 which is relating to disallowance of mark to market losses, at the time of hearing, Ld. DR brought to our notice relevant facts relating to the above grounds of appeal and requested to set-aside ... filed its written submissions vide letter dated 10.10.2023, for the sake of clarity it is reproduced below:- “5. Disallowance of Marked to Market Losses- Losses are calculated as per accounting standards. For the purposes of Income tax, this calculation should be as per CBDT circular 03/2010 dated 23/03/2010. Similar scheme

Viraj Profiles Private Limited, Mumbai vs. Dy. Commissioner of Income Tax, Central Circle-3(2), Mumbai

In the result, appeal filed by the assessee is partly allowed as per above directions

ITA 1213/MUM/2023[2020-21]Status: DisposedITAT Mumbai20 Dec 2023AY 2020-21

Bench: Shri Narender Kumar Choudhry, Hon’Ble & Shri S. Rifaur Rahman, Hon'Bleviraj Profiles Pvt Ltd V. Dy. Cit - Central Circle- 3(2) (Formerly Known As Viraj Profiles Limited) Room No. 1923, 19Th Floor 1St Floor, Viraj Towers Air India Building Jn Of Andheri Kurla Road Nariman Point W.E. Highway, Andheri (E) Mumbai- 400021 Mumbai- 400093 Pan: Aabcv1740N (Appellant) (Respondent) Dy. Cit - Central Circle- 3(2) V. Viraj Profiles Pvt Ltd (Formerly Known As Viraj Profiles Limited) Room No. 1923, 19Th Floor 1St Floor, Viraj Towers Air India Building, Nariman Jn Of Andheri Kurla Road Point W.E. Highway, Andheri (E) Mumbai- 400021 Mumbai- 400093 Pan: Aabcv1740N (Appellant) (Respondent) Assessee Represented By : Shri. Mani Jain Department Represented By : Shri. Ujjawal Kumar Chavan

Section 250Section 37Section 80G

Accordingly, ground raised by the revenue is dismissed. 13. With regard to Ground No. 5 which is relating to disallowance of mark to market losses, at the time of hearing, Ld. DR brought to our notice relevant facts relating to the above grounds of appeal and requested to set-aside ... filed its written submissions vide letter dated 10.10.2023, for the sake of clarity it is reproduced below:- “5. Disallowance of Marked to Market Losses- Losses are calculated as per accounting standards. For the purposes of Income tax, this calculation should be as per CBDT circular 03/2010 dated 23/03/2010. Similar scheme

Concentrix Services India Private Limited (Formerly Known As Minacs Private Limited, Minacs Limited & Adity Birla Minacs Worldwide Limited ), Mumbai vs. Joint Commissioner of It (OSD)10(2)(2)Assistant Commissioner of Income Tax-9(2)(2), Mumbai

ITA 5764/MUM/2017[2012-13]Status: DisposedITAT Mumbai18 Oct 2023AY 2012-13
For Appellant: Shri Yogesh TharFor Respondent: Shri Ajit Pal Singh Daia
Section 143(3)Section 144C(3)Section 92(1)Section 92B

filed by it. 4. On the facts and circumstances of the case and in law, the Ld CIT(A) erred in holding that 'Mark to Market' loss of Rs 7,15,92,175/- is not a notional loss, and therefore allowable. 5. On the facts and circumstances of the case ... raised by the Revenue are dismissed. Ground No. 4 25. Ground No. 4 raised by the Revenue is pertain to ‘Mark to Market’ loss of INR 7,15,92,175/- & ITA No. 5823/Mum/2019 AY 2011-12 & 2012-13 & AY 2013-14 25.1. The relevant facts in brief are that

Concentrix Services India Private Limited (Formerly Known As Minacs Private Limited, Minacs Limited & Adity Birla Minacs Worldwide Limited ), Mumbai vs. Deputy Commissioner of Income Tax-10(2)(2), Mumbai

ITA 5260/MUM/2017[2011-12]Status: DisposedITAT Mumbai18 Oct 2023AY 2011-12
For Appellant: Shri Yogesh TharFor Respondent: Shri Ajit Pal Singh Daia
Section 143(3)Section 144C(3)Section 92(1)Section 92B

filed by it. 4. On the facts and circumstances of the case and in law, the Ld CIT(A) erred in holding that 'Mark to Market' loss of Rs 7,15,92,175/- is not a notional loss, and therefore allowable. 5. On the facts and circumstances of the case ... raised by the Revenue are dismissed. Ground No. 4 25. Ground No. 4 raised by the Revenue is pertain to ‘Mark to Market’ loss of INR 7,15,92,175/- & ITA No. 5823/Mum/2019 AY 2011-12 & 2012-13 & AY 2013-14 25.1. The relevant facts in brief are that

Usg Boral Building Products(India) Private Limited, Haryana vs. ITO Ward-27(2), New Delhi

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 8446/DEL/2019[2015-16]Status: DisposedITAT Delhi14 Jul 2023AY 2015-16

Bench: Shri Kul Bharat & Shri M Balaganesh[Assessment Year : 2015-16] Knauf India Pvt.Ltd., Vs Ito, (Earlier Known As Usg Boral Ward-27(2), Building Products (India) Pvt.Ltd.), New Delhi. S-217, Ground Floor, Panchsheel Park, South Delhi, New Delhi-110017. Pan-Aabcl1984A Appellant Respondent Appellant By S/Shri S.K.Agarwal, Ca, Gopal Agarwal, Ca & Shubham Gupta, Ca Respondent By Shri Gurpreet Shah Singh, Sr. Dr Date Of Hearing 06.06.2023 Date Of Pronouncement 14.07.2023

Section 143(2)Section 37

entire foreign exchange fluctuation loss amounting to INR 31, 39, 751 as unrealized/notional in nature, on the premise that the same represents marked to market losses on foreign exchange derivatives, being contingent in nature and hence, not allowable under section 37 of the Act. 4.1. On the facts, and circumstances

M/S Dell International Services India Private Limited, Bangalore vs. Joint Commissioner of Income Tax Ltu, Bangalore

In the result, the appeals of the assessee and the revenue are partly allowed

ITA 932/BANG/2017[2012-13]Status: DisposedITAT Bangalore14 Nov 2022AY 2012-13

Bench: Smt. Beena Pillai & Ms. Padmavathy Sit(Tp)A No.844/Bang/2017 Assessment Year : 2012-13 The Joint Vs. M/S.Dell International Services India Commissioner Of Private Limited, Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), No.12/1, 12/2A, 13/1A, Divyashree Gardens, Challagutta Village, Varthur Hobli, Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent It(Tp)A No.932/Bang/2017 Assessment Year : 2012-13 M/S.Dell International Services Vs. The Joint Commissioner India Private Limited, Of Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent Revenue By : Shri Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Assessee By : Shri T. Suryanarayana, Advocate Date Of Hearing : 07.11.2022 Date Of Pronouncement : 14.11.2022

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri
Section 143(2)Section 92C

towards telecommunication charges in foreign currency from the export turnover and the total turnover in the remanded proceedings. GROUND NO. 8: Disallowance of Marked to Market losses: 63. The Assessee is primarily engaged in the business of outsourcing services to group companies located outside India and as a result

Joint Commissioner of Income Tax (Ltu), Bangalore vs. M/S Dell International Services India Private Limited, Bangalore

In the result, the appeals of the assessee and the revenue are partly allowed

ITA 844/BANG/2017[2012-13]Status: DisposedITAT Bangalore14 Nov 2022AY 2012-13

Bench: Smt. Beena Pillai & Ms. Padmavathy Sit(Tp)A No.844/Bang/2017 Assessment Year : 2012-13 The Joint Vs. M/S.Dell International Services India Commissioner Of Private Limited, Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), No.12/1, 12/2A, 13/1A, Divyashree Gardens, Challagutta Village, Varthur Hobli, Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent It(Tp)A No.932/Bang/2017 Assessment Year : 2012-13 M/S.Dell International Services Vs. The Joint Commissioner India Private Limited, Of Income Tax, Ltu, (For The Merged Entity Dell India Bangalore. Private Limited), Bangalore – 560 071. Pan : Aaach1925Q Appellant Respondent Revenue By : Shri Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Assessee By : Shri T. Suryanarayana, Advocate Date Of Hearing : 07.11.2022 Date Of Pronouncement : 14.11.2022

For Appellant: Shri T. Suryanarayana, AdvocateFor Respondent: Shri
Section 143(2)Section 92C

towards telecommunication charges in foreign currency from the export turnover and the total turnover in the remanded proceedings. GROUND NO. 8: Disallowance of Marked to Market losses: 63. The Assessee is primarily engaged in the business of outsourcing services to group companies located outside India and as a result

Ab Mauri India Private Limited, Bangalore vs. DCIT Corporate Circle 1(1), Chennai

The appeal stand allowed for statistical purposes

ITA 2091/CHNY/2017[2009-10]Status: DisposedITAT Chennai19 Oct 2022AY 2009-10

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri S.P. Chidambaram (Advocate) – Ld. ARFor Respondent: Shri AR V Sreenivasan (Addl. CIT) –Ld. DR
Section 143(3)Section 40

resident agents have a business connection in India so as to attract the provisions of 195 of the Act. 3. Disallowance of Marked to Market losses 3.1 The CIT(A) erred in confirming the disallowance of foreign exchange loss on account of Marked to Market (MTM) amounting to Rs.24

The Deutsche Investments India P.Ltd, Mumbai vs. Pr CIT 12, Mumbai

In the result, appeal of the assessee is allowed

ITA 3169/MUM/2017[2011-12]Status: DisposedITAT Mumbai30 Sept 2022AY 2011-12
Section 143(3)Section 263Section 92C

India Pvt. Ltd., (c) The CIT erred in not appreciating the fact that the AO has made any enquiry on the issue of marked to market loss on Non convertible debentures and Futures and Options during the regular assessment proceedings, in response to which a detailed note was submitted ... quashed. 2. The CIT erred in directing the AO to set aside the original assessment order on the issue of marked to market loss on Non-Convertible Debentures holding that the loss appeared to be notional in nature and cannot be allowed to be set off against taxable income