https://www.taxtmi.com/caselaws?id=26051 The High Court held that the compensation paid by the assessee for breach of contract was allowable as a trading loss under section 37(1) of the Income-tax Act. Additionally, the court considered the compensation paid for breach of contract without engaging in business activity as a business loss, emphasizing that the payment was wholly for business purposes. The High Court ruled in favor of the assessee, allowing the compensation to be treated as both a trading loss and a business loss, affirming the Tribunal's decision. Each party was directed to bear their own costs for the reference. en-us Tue, 01 Apr 1986 00:00:00 +0530 Tue, 02 Feb 2010 14:20:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26051 The High Court held that the compensation paid by the assessee for breach of contract was allowable as a trading loss under section 37(1) of the Income-tax Act. Additionally, the court considered the compensation paid for breach of contract without engaging in business activity as a business loss, emphasizing that the payment was wholly for business purposes. The High Court ruled in favor of the assessee, allowing the compensation to be treated as both a trading loss and a business loss, affirming the Tribunal's decision. Each party was directed to bear their own costs for the reference. Case-Laws Income Tax Tue, 01 Apr 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26051