Help!!! Important Query!

CASE LAW DETAILS

In thee Case of : Shree Capital Services vs. ACIT  , Decided By :ITAT Kolkota Special Bench, Decide on : 31/07/2009, Appeal No.: I.T.A. No. 1294 (KOL) of 2008, AssessmentYear :- 2004-05

SUMMARY OF THE CASE LAW
In respect of AY 2004-2005, the assessee suffered a loss on account of trading in futures and options. S. 43 (5) defines a “speculative transaction” as one in which a contract for purchase and sale of any commodity, includingstocks and shares, is settled otherwise than by actual delivery. Clause (d) was inserted in s. 43 (5) by the Finance Act, 2005 w.e.f 1.4.2006 to provide that “an eligible transaction of trading in derivatives” shall not be deemed to be a speculative transaction. The Special Bench had to consider (i) whether transactions in derivatives are a “speculative transaction” u/s 43 (5) and if so (ii) whether clause (d) of s. 43 (5) is clarificatory and retrospective in nature. HELD, deciding against the assessee:

(i) A ‘derivative’ is a security representing the value of the underlying stocks and shares and must be given the same treatment as that given to the stocks and shares. Also, s. 43 (5) uses the term “commodity” in a wide sense and covers ‘derivatives’. Further, the fact that s. 43(5)(d) exempts certain derivatives from the ambit of the definition of ‘speculative transaction’ shows that they would otherwise have come within that term as otherwise the amendment would be redundant.

FOR MORE DETAIL https://www.sebi.gov.in/commreport/LC04.html

thank you for the above update. but what i wanted to know was, is there any particular thing in which you have to have some net worth before you could transact in f&o. and can a firm be opened specificaly just to trade in the market which is not a brokerage. hope i made you understand my query.

As per new sebi guidelines u need to give income proof to trade in F&O.

@ the above post: can utell me how much income is required as per any guidelines..
 

plz tell me abt new Circulars of no cpt requried for gradutes. it's approved or not. can i wait some day ya prepaid for cpt exam?

help me............