1958 (10) TMI 6 - SC - Income Tax

Whether in the circumstances of the case the sum of ₹ 2,50,000 received by the assessee as damages or compensation for the premature termination of the contract of 9th May, 1940, is income assessable within the meaning of the Indian Income-tax Act?

Held that:- On a consideration of all the facts established, we are of opinion that the receipt of ₹ 2,50,000 by the respondent is a revenue receipt and is chargeable to tax.

In the result, the appeal is allowed, the judgment of the High Court set aside and the order of the Tribunal restored