Court :
Tribunal
Brief :
Citation :
Derivative trading not speculative THE Mumbai Tribunal has opined that loss suffered on account of trading in derivative instruments could not be treated as a loss of speculative nature. The Tribunal observed that as per the provisions of the I-T Act, to consider a transaction as speculative, there has to be purchase or sale of any commodity, including stock or shares. As the derivatives trading does not involve any purchase and sale of shares, loss on account of derivative could not be treated as speculation loss. Since dealings in derivatives are of a separate kind, unless it is provided in law, it would not be possible to hold that these transactions are speculative in nature.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
