S. 43(5): Derivatives can be speculative transactions: ITAT Mumbai

ACIT Vs. Dinesh K. Mehta HUF (ITAT Mumbai)

S. 43(5): Derivatives are speculative transactions if not for bona fide hedging

In respect of AY 2005- 06, the assessee, a dealer in shares, entered into transaction of purchases of Nifty Futures, which being a derivative instrument, was settled by payment of differences and not actual delivery of shares.

The assessee argued that the transactions were hedging transactions meant to minimise the

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