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2011 (3) TMI 52 - AT - Income TaxAdjustment of speculation loss - section 73 - speculative transactions under section 43(5) - Held that:- it is wholly immaterial whether or not the losses from non delivery based transactions, i.e. in trading in futures, are speculation losses or not. The profits of the assessee, being from share trading transactions which is the undisputed position, are hit by the provisions of Explanation to Section 73 and these profits can thus only be treated as speculation profits and, as speculation losses of trading in futures can thus be offset against speculation profits, there is no error in the speculation losses, even if that be so, being set off against profits of speculation business. The line of demarcation thus implied canvassed by the revenue against non delivery based speculation losses and losses in the speculation business under deeming fiction of Explanation to Section 73 is devoid of legally sustainable merits. There is no infirmity in the losses in non delivery based transactions being set off against profits of speculation business under the deeming fiction of Explanation to Section 73 of the Act.
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