Speculative loss of earlier years can be set off against profit earned on delivery-based share trading or deemed speculative business profit

Speculative loss incurred in earlier years by a company can be set off against profit earned on delivery-based share trading transactions. The HC held that since the business of delivery-based share trading transactions is deemed to be a speculative business for a company, such set off is permissible. Background and facts of the case:- Under the Indian Tax Law (ITL), a speculative transaction is defined to mean a contract for purchase or sale of any commodity, including stocks and shares, which is settled otherwise than by actual delivery or transfer of commodity or scrips. The characterisati...