Loss incurred on derivative transactions allowable as business loss

Magic Share Traders Ltd. Vs DCIT (ITAT Ahemdabad) Conclusion: Since loss arising from derivative transactions were excluded from being regarded as speculative business under section 43(5)(d) as per Explanation to section 73, therefore, the loss incurred on account of derivatives was business loss and allowed to be set off against business income. Held: Assessee company was engaged in the trading and investment in shares and securities, mutual funds and future & options. During the assessment year, assessee had carried out transactions in shares in cash segment as well as in derivative segm...