https://www.taxtmi.com/caselaws?id=762987 The Kerala HC ruled that derivative trading losses on recognized stock exchanges cannot be treated as speculative losses under Section 73. Following the amendment to Section 43(5), derivative transactions on recognized exchanges are classified as business transactions, not speculative ones. Consequently, losses from derivative trading qualify as business losses under Section 72, which can be set off against business profits. The court held that Section 73, which governs speculation business losses, does not apply to derivative trading on recognized exchanges. The Tribunal's decision allowing the set-off was upheld, ruling against the Revenue and in favor of the assessee. en-us Mon, 02 Dec 2024 00:00:00 +0530 Wed, 11 Dec 2024 08:15:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762987 The Kerala HC ruled that derivative trading losses on recognized stock exchanges cannot be treated as speculative losses under Section 73. Following the amendment to Section 43(5), derivative transactions on recognized exchanges are classified as business transactions, not speculative ones. Consequently, losses from derivative trading qualify as business losses under Section 72, which can be set off against business profits. The court held that Section 73, which governs speculation business losses, does not apply to derivative trading on recognized exchanges. The Tribunal's decision allowing the set-off was upheld, ruling against the Revenue and in favor of the assessee. Case-Laws Income Tax Mon, 02 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762987