https://www.taxtmi.com/caselaws?id=180202 Speculative transactions under Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922 are identified by their final settlement without actual delivery or transfer, rather than the parties' original contractual intention. Losses from such transactions cannot be treated as ordinary trading losses under section 10(1) and remain subject to the set-off restrictions applicable to speculative losses. Hedging-contract protection applies only where contracts are entered into during manufacturing or merchanting activities to guard against price fluctuations relating to actual-delivery contracts; absent those conditions, the transactions remain speculative. en-us Fri, 24 Aug 1962 00:00:00 +0530 Fri, 18 Mar 2016 15:02:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180202 Speculative transactions under Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922 are identified by their final settlement without actual delivery or transfer, rather than the parties' original contractual intention. Losses from such transactions cannot be treated as ordinary trading losses under section 10(1) and remain subject to the set-off restrictions applicable to speculative losses. Hedging-contract protection applies only where contracts are entered into during manufacturing or merchanting activities to guard against price fluctuations relating to actual-delivery contracts; absent those conditions, the transactions remain speculative. Case-Laws Income Tax Fri, 24 Aug 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180202