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F&O Transaction Made through Stock Exchange is not Speculative, can be set off against ordinary business Income

In Shri Dron Sureshkumar Rao vs ITO, Baroda, Income Tax Appellate Tribunal recently ruled that the future and option transaction carried out through recognized stock exchange cannot be treated as speculative transaction, can be set off against ordinary business income.

Judicial member Shri. Rajpal Yadav held so while allowing the appeal of assesse. The assesse raised the ground of appeal that CIT(A) has erred in not allowing set off of loss of Rs.3,19,071/- being loss on trading of shares/securities against other business income.

The assesse in the instant case has started trading activities in shares, filed a copy of bank statement and ledger account of M/s.Marfatia Stock Brokings P.Ltd wherein AO held that the loss shown by the assessee as speculative loss and observed that since the assessee has no speculative profit, therefore, he has neither entitled to claim set off nor to claim carry forward.

Article referred: http://www.taxscan.in/fo-transaction-carried-recognized-stock-exchange-not-speculative-transaction-can-set-off-ordinary-business-income-itat/15144/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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