Speculation Loss Cannot Offset F&O Profits: ITAT Mumbai

DCIT Vs JM Financial Services Ltd. (ITAT Mumbai) In the case of DCIT v. JM Financial Services Ltd. (ITAT Mumbai, Third Member), the assessee, a stock broker engaged in arbitrage operations, simultaneously purchased shares in the cash segment and sold them in the Futures & Options (F&O) segment. During the relevant assessment years, the assessee incurred losses in the cash segment while earning profits in the F&O segment, resulting in an overall gain. The Assessing Officer (AO) disallowed set-off of the cash segment losses against F&O profits, treating them as speculation losses...