Delhi HC holds derivative loss as speculative

Loss from trading of derivatives in shares held as ‘deemed speculative’; When underlying asset (i.e. shares) is covered by Sec 73 explanation, derivatives deriving its values from shares falls within the Explanation to Sec 73(4); Overrules ITAT ruling; Exclusion of derivatives from definition of speculative transactions u/s 43 limited to computation of business income; It cannot be applied to deeming fiction created by statute u/s 73; Definition enacted for only a restricted purpose or objective should not be applied to achieve other ends or purposes : Delhi HC in DLF Commercial Developers LTD.

To view complete judgement Delhi HC holds derivate loss as speculative