https://www.taxtmi.com/caselaws?id=7231 Damages received for breach of a commodity supply contract are not speculative receipts unless the underlying contract is itself settled otherwise than by actual delivery or transfer. The court distinguished a contractual settlement from a post-breach claim for damages: where the buyer failed to open the agreed letter of credit, the seller's receipt was compensation for breach under contract and sale of goods law, not a speculative transaction within Explanation 2 to section 24(1) of the Income-tax Act, 1922. The amount therefore could not be treated as speculative income for set-off purposes, and the answer was against the assessee. en-us Thu, 29 Jun 1967 00:00:00 +0530 Mon, 16 Feb 2009 09:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7231 Damages received for breach of a commodity supply contract are not speculative receipts unless the underlying contract is itself settled otherwise than by actual delivery or transfer. The court distinguished a contractual settlement from a post-breach claim for damages: where the buyer failed to open the agreed letter of credit, the seller's receipt was compensation for breach under contract and sale of goods law, not a speculative transaction within Explanation 2 to section 24(1) of the Income-tax Act, 1922. The amount therefore could not be treated as speculative income for set-off purposes, and the answer was against the assessee. Case-Laws Income Tax Thu, 29 Jun 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7231