1993 (1) TMI 47 - HC - Income Tax

Summary

The High Court of Bombay ruled in favor of the assessee, stating that the compensation paid for breach of contract did not amount to a speculative transaction under section 43(5) of the Income-tax Act, 1961. The judgment was based on a previous Supreme Court ruling in CIT v. Shantilal P. Ltd. [1983] 144 ITR 57, which clarified that damages awarded for breach of contract do not constitute a speculative transaction.