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2012 (8) TMI 483 - AT - Income TaxDisllowance of set off of losses - loss from transactions in futures & options against short term capital gain derived from transactions in shares and mutual fund units - Held that:- As a result of the amendment in Section 43(5) with effect from 1st April 2006, losses incurred in derivative trading are held to be eligible for being set off against normal business profits, as derivate trading itself is treated as a non- speculative business, and losses of any non- speculative businesses can be adjusted profits of any non-speculative business - the case of the assessee is squarely covered by the amendment in the Act As decided in CIT Vs. Shri Bharat R.Ruia [2011 (4) TMI 37 - BOMBAY HIGH COURT] future & option are one of the categories of derivatives and loss suffered by the assessee during future & option transactions is not a speculative loss thus, the same can be set off against short term capital gains by the assessee during the relevant assessment year - in favour of assessee.
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