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2016 (5) TMI 1265 - HC - Income TaxLiquidated damages received for delay in supply of a boiler - whether was in the nature of a capital receipt or revenue receipt - Held that:- Determination of liquidated damages was not based upon the calculation made in respect of loss of profit on account of supply of the boiler, but was directly linked with the procurement of a capital asset. Delay in supply would result in delay in the coming into existence of a profit making apparatus, rather than a receipt in the course of profit earning process. See Commissioner of Income Tax vs. Saurashtra Cements and Chemicals India Limited [2010 (7) TMI 11 - SUPREME COURT] Tribunal correctly held that the liquidated damages received by the respondent-assessee, for delay in supply of a boiler, was in the nature of a capital receipt.
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