https://www.taxtmi.com/caselaws?id=7651 A contract for purchase and sale of rice was treated as a speculative transaction where it was ultimately settled otherwise than by actual delivery. The court distinguished settlement by payment from damages for breach: although Government restrictions made delivery impossible, the assessee chose to pay differences to honour the contracts and protect business reputation, so the payments were regarded as contractual settlement rather than breach damages. On that basis, the resulting loss fell within the statutory definition of speculative transaction and was not deductible as ordinary business expenditure. en-us Tue, 12 Aug 1969 00:00:00 +0530 Tue, 17 Mar 2009 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7651 A contract for purchase and sale of rice was treated as a speculative transaction where it was ultimately settled otherwise than by actual delivery. The court distinguished settlement by payment from damages for breach: although Government restrictions made delivery impossible, the assessee chose to pay differences to honour the contracts and protect business reputation, so the payments were regarded as contractual settlement rather than breach damages. On that basis, the resulting loss fell within the statutory definition of speculative transaction and was not deductible as ordinary business expenditure. Case-Laws Income Tax Tue, 12 Aug 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7651