https://www.taxtmi.com/caselaws?id=76690 SC held that liquidated damages calculated under the contract for delay in delivery of plant machinery were compensatory for sterilization of a capital asset and not revenue in nature. The court found the damages were tied to delayed procurement of the cement plant, affecting the profit-earning apparatus, and thus constituted a capital receipt. The High Court's conclusion that the amount received (Rs.8,50,000) was capital in nature was affirmed, and the appeal was dismissed with no order as to costs. en-us Fri, 09 Jul 2010 00:00:00 +0530 Tue, 14 Jul 2026 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76690 SC held that liquidated damages calculated under the contract for delay in delivery of plant machinery were compensatory for sterilization of a capital asset and not revenue in nature. The court found the damages were tied to delayed procurement of the cement plant, affecting the profit-earning apparatus, and thus constituted a capital receipt. The High Court's conclusion that the amount received (Rs.8,50,000) was capital in nature was affirmed, and the appeal was dismissed with no order as to costs. Case-Laws Income Tax Fri, 09 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76690