1971 (3) TMI 30

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....unal, Delhi Bench "B", has-referred the following questions of law for the opinion of this court, at the instance of the Commissioner of Income-tax, Lucknow. The questions are : "(1) Whether, on the facts and in the circumstances of the case, the loss of Rs. 38,026 suffered by the assessee was speculation loss? (2) If the answer to the first question is in the affirmative, whether the said l....

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....d damages and were liable to be set off as against the profits earned by it during the year from ready business. The department, however, claimed that these were speculation losses which could be adjusted against the profits of speculation business. The Income-tax Officer rejected the contention of the assessee and declined to set off these losses against the profits earned by the assessee from no....

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....fference between the contract price and the prevailing market price. According to Explanation 2 to section 24(1) of the Income-tax Act, 1922, speculative transaction means a transaction in which a contract for purchase and sale of any commodity including stocks and shares is periodically, or ultimately settled otherwise than by actual delivery or transfer of the commodity. In this case there is no....