https://www.taxtmi.com/caselaws?id=20983 Compensation paid for breach of contract was held not to be a speculative transaction under section 43(5) of the Income-tax Act, 1961, because speculative settlement requires substitution of performance by acceptance of satisfaction, not mere breach followed by damages. The court applied the Supreme Court's interpretation of "settlement" and noted that damages for breach remain governed by contract law, including the right to compensation under the Indian Contract Act, 1872. On that basis, the resulting loss was treated as a business loss and allowed in favour of the assessee. en-us Fri, 29 Jan 1993 00:00:00 +0530 Wed, 18 Nov 2009 13:50:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20983 Compensation paid for breach of contract was held not to be a speculative transaction under section 43(5) of the Income-tax Act, 1961, because speculative settlement requires substitution of performance by acceptance of satisfaction, not mere breach followed by damages. The court applied the Supreme Court's interpretation of "settlement" and noted that damages for breach remain governed by contract law, including the right to compensation under the Indian Contract Act, 1872. On that basis, the resulting loss was treated as a business loss and allowed in favour of the assessee. Case-Laws Income Tax Fri, 29 Jan 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20983