https://www.taxtmi.com/caselaws?id=69180 A contract for sale of castor oil settled without actual delivery, where the assessee paid the rate difference as damages after failing to deliver, was treated as a speculative transaction for income-tax purposes. The fact that the payment was described as damages for breach of contract did not change its tax character because the contract was not performed by delivery and settlement occurred after the delivery time had expired. The isolated nature of the contract and completion of other contracts did not alter the position for this transaction. The resulting loss was therefore characterised as a speculative loss and not an allowable business expenditure. en-us Fri, 02 Apr 1976 00:00:00 +0530 Tue, 05 Apr 2011 16:15:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69180 A contract for sale of castor oil settled without actual delivery, where the assessee paid the rate difference as damages after failing to deliver, was treated as a speculative transaction for income-tax purposes. The fact that the payment was described as damages for breach of contract did not change its tax character because the contract was not performed by delivery and settlement occurred after the delivery time had expired. The isolated nature of the contract and completion of other contracts did not alter the position for this transaction. The resulting loss was therefore characterised as a speculative loss and not an allowable business expenditure. Case-Laws Income Tax Fri, 02 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69180