Loss from derivative trading can be set off against regular business income

Kippy Engineering Private Limited Vs DCIT (ITAT Kolkata)

Introduction: The Income Tax Appellate Tribunal (ITAT) in Kolkata recently ruled in favor of Kippy Engineering Private Limited in a case against the Deputy Commissioner of Income Tax (DCIT). The case revolved around losses from derivative trading that were adjusted with the company’s business income. The ITAT found the assessment by DCIT of these losses as speculative, and therefore non-adjustable, to be incorrect and deleted the addition.