TMI Blog1974 (10) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... hether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the loss incurred by the assessee by payment of Rs. 14,001 as compensation or damages for non-delivery of the part of the goods under the various contracts by way of difference on the basis of prevailing market price was deductible or allowable in computing the income of the assessee from business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred an appeal before the Tribunal. The Tribunal found that in most of the contracts substantial delivery of jute goods during the various periods had been effected and only in the case of one or two contracts the goods had not been delivered in lieu of which payment on the basis of difference had been made. It was found by the Tribunal that the assessee was carrying on business of manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips. The proviso to that definition provides certain Explanations with which we need not concern ourselves in this reference. Therefore, in order to be a speculative transaction it should be a transaction under which the contract for the purchase or sale of the commodity is periodic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contract itself but on its breach. Where the money which the assessee received was in settlement of the amount of damages suffered by the assessee by reason of the breach of the contract to deliver, it was held that the receipt was not a receipt from a speculative transaction as defined in Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922, and the money was not liable to be set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the Calcutta High Court under section 43(5) of the Income-tax Act, 1961, in the case of B. R. Kushalraj v. I. T. Commissioner [1974] 96 ITR 401 (Mys). In the aforesaid view of the matter the question referred to this court must be answered in the affirmative and in favour of the assessee. Each party will pay and bear its own costs. PYNE J.--I agree. - - TaxTMI - TMITax - In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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