Capital gains

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This query is : Resolved

Himani Maini (Querist)

24 October 2015 CIT v. Saurashtra Cement Ltd. (2010) 325 ITR 422 (SC): The assessee, a cement manufacturing company, entered into an agreement with a supplier for purchase of cement plant. One of the conditions in the agreement was that if the supplier failed to supply the machinery within the stipulated time, the assessee would be compensated at 5% of the price of the respective portion of the machinery without proof of actual loss. The assessee received ` 8.50 lakhs from the supplier by way of liquidated damages on account of his failure to supply the machinery within the stipulated time. The Department assessed the amount of liquidated damages to income-tax. However, the Appellate Tribunal held that the amount was a capital receipt and the High Court concurred with this view.
But in case of Laxamidevi Ratani high court held that where a seller has not made performance of the contract for sale of property,the amount received by buyer for compromise against suit filed by the buyer for non performance would be chargable to cap gain
Which is contridictory to above view. Pls explain, as in both cases the cap assets are involved so which decision should prevail