Non-speculative loss under income-tax law: transaction loss fell outside the statutory concept of speculation.

Loss arising from a transaction outside the statutory concept of speculation under Explanation 2 to section 24 of the Indian Income-tax Act, 1922 is not a speculative loss. The Calcutta High Court note states that the issue was governed by its earlier decisions on the same construction, and on that settled view the disputed loss was treated as non-speculative. The assessee therefore obtained relief on the substantive tax issue.

---

---

Issues: Whether the loss arising from the transaction in question was speculative within the meaning of Explanation 2 to section 24 of the Indian Income-tax Act, 1922.

Analysis: The issue was treated as covered by earlier decisions of the same court on the construction of Explanation 2 to section 24. Applying that settled view, the loss from the transaction was not treated as a speculative loss.

Conclusion: The question was answered in the negative and the assessee succeeded on the first question.

Final Conclusion: The reference was disposed of by holding that the disputed loss was not speculative, and the assessee obtained relief on the substantive issue decided.

Ratio Decidendi: A loss arising from a transaction falling outside the statutory concept of speculation under Explanation 2 to section 24 of the Indian Income-tax Act, 1922 is not a speculative loss.

---