https://www.taxtmi.com/caselaws?id=27948 The Tribunal ruled in favor of the assessee, determining that the payment of Rs. 25,000 was an ordinary commercial loss resulting from breach of contract, not a speculative loss under s. 43(5) of the Income Tax Act. The Tribunal emphasized that the settlement arose due to the assessee's inability to fulfill contracts, distinguishing it from speculative transactions lacking physical delivery. Various court judgments were cited to support the decision, highlighting that settlements for breach of contract do not fall under speculation business. The Department's claim of speculation loss was rejected, and each party was ordered to bear their own costs. en-us Fri, 25 May 1984 00:00:00 +0530 Wed, 17 Feb 2010 10:33:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27948 The Tribunal ruled in favor of the assessee, determining that the payment of Rs. 25,000 was an ordinary commercial loss resulting from breach of contract, not a speculative loss under s. 43(5) of the Income Tax Act. The Tribunal emphasized that the settlement arose due to the assessee's inability to fulfill contracts, distinguishing it from speculative transactions lacking physical delivery. Various court judgments were cited to support the decision, highlighting that settlements for breach of contract do not fall under speculation business. The Department's claim of speculation loss was rejected, and each party was ordered to bear their own costs. Case-Laws Income Tax Fri, 25 May 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27948