1979 (10) TMI 3 - SC - Income Tax

Whether the loss of Rs. 1, 03, 688 was the result of speculative transactions within the meaning of Explanation 2 to section 24(1) of the Indian Income-tax Act 1922 and therefore was not allowable to be set off under section 24(1) - Transactions of sale and purchase were settled by handing over delivery orders and payment by cheque - question is answered in favour of revenue

Summary

The Supreme Court dismissed the appeal regarding the application of Expln. 2 to s. 24(1) of the Indian I.T. Act, 1922. The High Court ruled that transactions without actual delivery were speculative and not allowable for set off under s. 24(1). The appeal was dismissed with costs.