https://www.taxtmi.com/caselaws?id=7126 Transactions in gunny bags carried out through transfer of delivery orders did not amount to speculative transactions merely because there was no actual physical delivery. The governing test was whether the contract was settled otherwise than by actual delivery or transfer of the commodity; the absence of physical delivery alone was insufficient. On the facts, the trades were found to be ordinary Calcutta jute transactions effected against full payment, and delivery orders were treated as a legally effective mode of transfer under the Sale of Goods Act. The loss was therefore not disallowed as speculative and was allowable to be set off under Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922. en-us Mon, 25 Apr 1966 00:00:00 +0530 Tue, 10 Feb 2009 19:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7126 Transactions in gunny bags carried out through transfer of delivery orders did not amount to speculative transactions merely because there was no actual physical delivery. The governing test was whether the contract was settled otherwise than by actual delivery or transfer of the commodity; the absence of physical delivery alone was insufficient. On the facts, the trades were found to be ordinary Calcutta jute transactions effected against full payment, and delivery orders were treated as a legally effective mode of transfer under the Sale of Goods Act. The loss was therefore not disallowed as speculative and was allowable to be set off under Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Mon, 25 Apr 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7126