Commodity trading loss can set off against normal business

No trading speculative loss is a specified income and such income cannot be set off against normal business income. Such loss of specified business can be set off against such specified business of other assessment years

Future and option is derivatives hence I think is not speculation business

However, there are case laws which prohibit the carry forward and set-off of loss from F&O transactions stating share derivative transactions carry the character of speculative transactions for section 73 and any loss arising therefrom will be characterised as loss from speculative business and same cannot be set-off against normal business income

As per section 43(5) future and options are not consider as speculation

But as per it act derivatives are under speculative activities including futures

But in exception to the section 43(5) clearly provides that such derivatives are not speculative transaction

Yes you are right there was a confusion,

Speculative business income:Income from intraday equity trading is considered as speculative.
Non-speculative business income:Income from trading F&O (both intraday and carryforward) on is considered as non-speculative business. F&O is also considered as non-speculative as these instruments are used for hedging and also for taking/giving delivery of underlying contract.

As per the Section 71 of the Income Tax Act, loss in respect of such business can be set off against any other heads of income including income from speculative business but excluding income under the head “salaries” of that year.

As per Section 72 of the Income Tax Act, if there is any such loss which is not set off against the above said incomes, such losses are eligible to be carriedu forward and set off against the other incomes excluding income from salary for a period of 8 subsequent assessment years in the manner as specified in the above order of set off.

Loss in respect of Speculative

Thanks conclusion I am able to set off against normal business