Loss from Gold Derivatives Trading Treated as Hedging, Not Speculative: ITAT Delhi

DCIT Vs Religare Comtrade Ltd (ITAT Delhi) ITAT Delhi held that loss incurred on account of trading in gold derivatives being hedging transaction and was excluded from the definition of speculative transaction in terms of section 43(5)(a) of the Income Tax Act. Accordingly, appeal of revenue dismissed. Facts- The assessee company is engaged in the business of trading in gold, silver, bullion, precious and semi-precious metals. During the impugned year, the assessee had claimed deduction of Rs.27.84 crores on account of arbitrage and hedging. AO treated the same as speculative loss, rejecting t...