Futures & Options are speculative transactions u/s 43(5), S.43(5)(d) is not retrospective

In respect of AY 2004-2005, the assessee suffered a loss on account of trading in futures and options. S. 43 (5) defines a “speculative transaction” as one in which a contract for purchase and sale of any commodity, including stocks and shares, is settled otherwise than by actual delivery. Clause (d) was inserted in s. 43 (5) by the Finance Act, 2005 w.e.f 1.4.2006 to provide that “an eligible transaction of trading in derivatives” shall not be deemed to be a speculative transaction. The Special Bench had to consider (i) whether transactions in derivatives are a “speculative transact...