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2011 (6) TMI 136 - AT - Income TaxSet off of loss - business transactions or speculative transaction - whether profit arising from derivative transactions at Rs. 23,62,290 should be treated as non-speculative and accordingly available to be set off against regular business income - The only issue involved in this appeal is whether by virtue of notification from CBDT dated 25-1-2006 in S.O.(89E) recognizing National Stock Exchange and Bombay Stock Exchange for the purpose of derivative transactions would make the application of clause (d) of section 43(5) effective only from 25-1-2006 or this provision will remain in effect from 1-4-2006 when the clause (d) of sub-section (5) was brought into statute - with effect from 1-4-2006 amendments were made in section 43(5) and the transactions involved in derivatives were taken out of definition of speculative transactions - Therefore, in our considered view if transactions are carried out through stock exchanges from 1-4-2005 to 25-1-2006 which are recognized by notification issued by CBDT on 25-1-2006 would be eligible for being treated as non-speculative within the meaning of clause (d) of proviso to section 43(5) - Since there is no dispute to the fact that the transactions in the present case in F&O segment are the eligible transactions carried out in a recognized stock exchange, loss in such transactions cannot be deemed to be transaction in speculation business - Appeal is dismissed
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