Letters of renunciation are not commodities; trading loss was treated as a deductible business loss.

Letters of renunciation, being the shareholder's right to renounce allotment in favour of another person, may be traded but are neither shares nor commodities within the relevant definition. As transactions in such letters do not constitute dealings in shares or commodities, they are not speculative transactions. On that basis, the loss arising from dealings in letters of renunciation was treated as a business loss and allowed as a deduction.

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Issues: Whether letters of renunciation were a commodity in the nature of scrips and whether the loss arising from dealings in such letters was a business loss allowable as a deduction.

Analysis: Letters of renunciation represent the right of a shareholder to renounce allotment in favour of another person. They can be sold and traded, but they are neither shares nor commodities within the scope of the relevant definition. If the transactions are not in shares or commodities, they do not fall within the category of speculative transactions.

Conclusion: The letters of renunciation were not a commodity in the nature of scrips, and the loss of Rs. 1,07,125 was a business loss allowable as a deduction, in favour of the assessee.

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