Jobbing is not speculative in view of proviso(c) to section 43(5)

In normal terminology, the share trading business on behalf of oneself is known as jobbing. Section 43(5) defines the word speculative transaction, but there are three exceptions to it. The proviso (c) to section 43(5) reads as under : ‘ ‘A contract entered into by a member of forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to hedge against loss which may arise in the ordinary course of his business as a member.’ This proviso makes it very clear that any profit or loss on account of jobbing will not be in the nature of...