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2017 (12) TMI 40 - AT - Income TaxLoss on account of breach of contract - treated as a speculation loss - Held that:- On perusal of the clause of contract it appears that timely compliance with the required documents and acceptance of the goods is the essence of the letter of understanding entered into between the buyer and the seller. As assessee has deemed to have breached the contract by not accepting the deliveries of the goods within the agreed period, the seller has the right to claim all losses and damages from the buyer at the prevailing market price. There is a categorical finding by Hon’ble High Court that the fact of loss being genuine was not in dispute. In the facts of the present case, assessing officer himself is recording that assessee made payments to these parties for indemnifying damages caused due to cancellation of contract. As the sale has not taken place at all it cannot be considered as speculative transaction. Accordingly, ground raised by revenue stands dismissed.
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