https://www.taxtmi.com/caselaws?id=37438 Share transactions settled by payment of differences, with delivery taken or given only for the net excess, fall within the speculative transaction test in Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922 because actual delivery of the scrips is required. Clearing house adjustment, commercial set-off, or constructive delivery do not satisfy that requirement. Transactions of this kind are treated as a separate speculative business under Explanation 1, so the resulting losses are confined to set-off against speculative profits. The loss in the Difference Account was therefore treated as speculative loss and the result was against the assessee. en-us Fri, 26 May 1978 00:00:00 +0530 Mon, 29 Mar 2010 16:29:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37438 Share transactions settled by payment of differences, with delivery taken or given only for the net excess, fall within the speculative transaction test in Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922 because actual delivery of the scrips is required. Clearing house adjustment, commercial set-off, or constructive delivery do not satisfy that requirement. Transactions of this kind are treated as a separate speculative business under Explanation 1, so the resulting losses are confined to set-off against speculative profits. The loss in the Difference Account was therefore treated as speculative loss and the result was against the assessee. Case-Laws Income Tax Fri, 26 May 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37438