Commodity transactions in regular course of business are not speculative transaction

ACIT Vs Clothing Culture Ltd (ITAT Mumbai) ITAT Mumbai held that commodity transactions carried out as regular business transaction cannot be treated as speculative transaction. Accordingly, the loss incurred from the same is treated as normal business loss. Facts- The assessee is a limited company engaged in the business of manufacturing and trading of textile products. AO during the course of assessment proceedings observed that assessee had sold shares of M/s. Anukaran Commercial Enterprises Ltd (in short as ‘ACEL’) and had originally shown short term capital gain of Rs.34,05,60,006/- i...