https://www.taxtmi.com/caselaws?id=5356 A merchant's contracts fell outside the hedging exception in clause (a) of the third proviso to section 24(1) because the statutory carve-out applies only where the speculative contract in merchandise is linked to contracts for actual delivery of goods sold by the assessee. Explanation 2 defined speculative transactions broadly, but the proviso was confined to real hedges against future price fluctuations in respect of sale contracts, not to purchase contracts or general business-risk cover. The decisive requirement was a genuine correlation between the hedging contract and the underlying sale contracts for actual delivery. en-us Wed, 15 Jan 1992 00:00:00 +0530 Fri, 23 May 2025 15:46:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5356 A merchant's contracts fell outside the hedging exception in clause (a) of the third proviso to section 24(1) because the statutory carve-out applies only where the speculative contract in merchandise is linked to contracts for actual delivery of goods sold by the assessee. Explanation 2 defined speculative transactions broadly, but the proviso was confined to real hedges against future price fluctuations in respect of sale contracts, not to purchase contracts or general business-risk cover. The decisive requirement was a genuine correlation between the hedging contract and the underlying sale contracts for actual delivery. Case-Laws Income Tax Wed, 15 Jan 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5356