https://www.taxtmi.com/caselaws?id=9217 The court held that the payment of Rs. 16,000 by the assessee in settlement of contracts constituted a loss in speculation rather than an admissible expense. The contracts were deemed speculative transactions under section 43(5) of the Income-tax Act, 1961, as they were settled without actual delivery of goods. The court emphasized that the intention of parties at the time of the original contract regarding delivery was irrelevant for income-tax purposes. Consequently, the payment was considered a speculation loss and not an allowable deduction, ruling in favor of the respondent and awarding costs to them. en-us Tue, 20 Mar 1973 00:00:00 +0530 Sat, 20 Jun 2009 14:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9217 The court held that the payment of Rs. 16,000 by the assessee in settlement of contracts constituted a loss in speculation rather than an admissible expense. The contracts were deemed speculative transactions under section 43(5) of the Income-tax Act, 1961, as they were settled without actual delivery of goods. The court emphasized that the intention of parties at the time of the original contract regarding delivery was irrelevant for income-tax purposes. Consequently, the payment was considered a speculation loss and not an allowable deduction, ruling in favor of the respondent and awarding costs to them. Case-Laws Income Tax Tue, 20 Mar 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9217