A client who is dealer in commodities such as cottonseed cake, soyabean, etc, the dealer trades in physical delivery normal business and also enters into contract of commodities on MCX exchange but there is no actual delivery and the contract is settled otherwise than delivery. If there is loss from MCX transactions and profit from nornal trading whhether Loss from MCX transactions would be treated as speculation loss or would be treated along with business. According to dealer the MCX transaction are in the course of business.
So profit/ loss on the same would be treated as speculative income or normal income or any other treatment for income tax purpose?
CAclubindia
