https://www.taxtmi.com/caselaws?id=37824 A contract for sale is treated as speculative for income-tax purposes if it is settled otherwise than by actual delivery, and the statutory expression "contract settled" is wide enough to include settlement after breach. The majority held that damages paid on compromise of a manganese ore sale contract, where no delivery of the contracted goods occurred, fell within the speculative loss definition under the Income-tax Act. The character of the payment as damages did not exclude the statutory rule, because the Act gives "speculative transaction" a special meaning independent of general contract law. A later delivery transaction with another purchaser did not alter the character of the earlier settlement. en-us Wed, 15 Feb 1978 00:00:00 +0530 Thu, 01 Apr 2010 12:36:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37824 A contract for sale is treated as speculative for income-tax purposes if it is settled otherwise than by actual delivery, and the statutory expression "contract settled" is wide enough to include settlement after breach. The majority held that damages paid on compromise of a manganese ore sale contract, where no delivery of the contracted goods occurred, fell within the speculative loss definition under the Income-tax Act. The character of the payment as damages did not exclude the statutory rule, because the Act gives "speculative transaction" a special meaning independent of general contract law. A later delivery transaction with another purchaser did not alter the character of the earlier settlement. Case-Laws Income Tax Wed, 15 Feb 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37824