ITAT allows set-off of Derivative losses against Business Income

Magic Share Traders Ltd Vs ITO (ITAT Ahmedabad) The issue under consideration is whether a company dealing in ‘derivatives’ could be considered as engaged in speculative business as per Section 73 or not? In the present case, the assessee seeks set off of losses arising from derivative losses as non-speculative business losses. The Revenue had considered the loss arising from derivative transactions as ‘speculative loss’ and had consequently denied set off of such losses from regular income of non-speculative nature, etc., by applying Explanation to section 73. ITAT states that the exp...