Loss from Derivative Transactions on NSE & BSE before 25.01.2006 is Speculative

In this case during the course of assessment proceedings, it was noticed by the Assessing Officer that the assessee company had incurred loss of Rs.  1,15,880/- in respect of derivative transaction during the period under consideration. Assessing Officer further noticed that the transactions in question have been made on National Stock Exchange and Bombay Stock Exchange which were not recognized for the purpose of Rule 6DDA and the notification to recognize these stock exchanges was issued only on 25.1.2006.  Therefore, Assessing Officer held that the loss arising out of purchase and sale of...