Commodity Derivatives Trading loss can be Set Off against Regular Business Income

Ramesh Verma Vs ACIT (ITAT Lucknow) ITAT held that Reading clause (e) of the first proviso to section 43(5), and sections 70(1) and 73(1) of the I.T. Act together, it emerges that in the assessee’s case, since a derivatives commodity trading transaction is not a speculative transaction, loss arising therefrom can very well be set off against the profit of the medical derivatives business of the assessee. Rather, it is only against such business profit that the business loss from the derivatives commodity trading can be set off. FULL TEXT OF THE ORDER OF ITAT LUCKNOW This is assessee’s app...