https://www.taxtmi.com/caselaws?id=6502 Illegal or unenforceable losses from banned forward contracts were treated as usable only for computing the true profits of the same business, not for extending tax benefits beyond that business. The Supreme Court distinguished intra-year computation of business profit from set-off against other profits, and held that such hedging or speculative losses could not be adjusted against profits of other businesses for the year. It also held that carry forward under the tax scheme was confined to lawful business losses, so speculation losses from prohibited forward contracts could not be carried to the next year. The governing principle was that unlawful activity cannot generate continuing tax advantages. en-us Fri, 18 Feb 1977 00:00:00 +0530 Fri, 05 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6502 Illegal or unenforceable losses from banned forward contracts were treated as usable only for computing the true profits of the same business, not for extending tax benefits beyond that business. The Supreme Court distinguished intra-year computation of business profit from set-off against other profits, and held that such hedging or speculative losses could not be adjusted against profits of other businesses for the year. It also held that carry forward under the tax scheme was confined to lawful business losses, so speculation losses from prohibited forward contracts could not be carried to the next year. The governing principle was that unlawful activity cannot generate continuing tax advantages. Case-Laws Income Tax Fri, 18 Feb 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6502