Future option income (F&O) can not be set off against speculation Loss

RELEVANT PARAGRAPH 4. We have perused the records and considered the rival contentions carefully. The dispute raised in this appeal is whether F & O transaction can be considered as speculative transaction or not. The speculative transactions have been defined in section 43(5) as transactions in which contract for purchase or sale of any commodity including stock of shares is periodically and ultimately settled otherwise than by the actual delivery or transfer of commodity or scrips. The said provisions is reproduced below as ready reference. “43(5) Speculative transaction means a tr...