https://www.taxtmi.com/caselaws?id=60995 Forward cotton contracts settled without actual delivery were treated as speculative transactions under section 43(5) of the Income-tax Act, 1961. The analysis relied on the governing test of real, not notional, delivery and the Supreme Court's approach in Davenport & Co., noting that the use of "or" in the provision broadened the statutory scope. On that reasoning, contracts entered into on both purchase and sale sides, but never performed by delivery, fell within the definition of speculation, so the resulting loss was not allowable for set-off. en-us Sat, 17 Apr 1982 00:00:00 +0530 Mon, 10 Jan 2011 13:01:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60995 Forward cotton contracts settled without actual delivery were treated as speculative transactions under section 43(5) of the Income-tax Act, 1961. The analysis relied on the governing test of real, not notional, delivery and the Supreme Court's approach in Davenport & Co., noting that the use of "or" in the provision broadened the statutory scope. On that reasoning, contracts entered into on both purchase and sale sides, but never performed by delivery, fell within the definition of speculation, so the resulting loss was not allowable for set-off. Case-Laws Income Tax Sat, 17 Apr 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60995