1989 (3) TMI 23

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....ellate Tribunal has referred the following two questions of law for the decision of this court at the instance of the Revenue : R. A. No. 25 (Coch) of 1983: Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amounts paid or settled by way of damages after the breach of contracts entered into by the assessee should not be treated as loss....

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....ls). In second appeal; the Appellate Tribunal, following the decisions of the Calcutta, Delhi and Karnataka High Courts, held that the settlement in pursuance of which damages were payable by the respondent/assessee would not amount to speculative loss. The Tribunal did not follow the decision of the Madras High Court to the contrary. On this basis, appropriate directions were given to the Income-....

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....l for the Revenue as also counsel for the assessee. For the first question, the Appellate Tribunal relied on the decision of the Calcutta High Court in CIT v. Pioneer Trading Co. P. Ltd. [1968] 70 ITR 347 and similar cases. The said decision was approved by the Supreme Court in CIT v. Shantilal P. Ltd. [1983] 144 ITR 57. In the light of the decision of the Supreme Court, the conclusion of the A....

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.... court, by judgment dated February 25, 1986, held that the respondent-assessee is an industrial company within the meaning of section 2(6)(c) of the Finance Act, 1972. The Appellate Tribunal has also found that the nature of the operations carried on by the assessee-company is similar for this year also. In the light of the earlier decision of this court in I. T. R. No. 375 of 1980 (CIT v. Rajm....