LD recd whether capital or revenue receipt
Last updated: 13 October 2010
Court :
Supreme court
Brief :
The assessee, engaged in the manufacture of cement, entered into an agreement with M/s Walchandnagar Industries Limited, Bombay, ("the supplier") on 1st September, 1967 for purchase of additional cement plant from them for a total consideration of Rs.1,70,00,000/-. As per the terms of contract, the amount of consideration was to be paid by the assesse in four instalments. The agreement contained a condition with regard to the manner in which the machinery was to be delivered and the consequences of delay in delivery.
Citation :
LD - the damages that are quantified and specified speficically for non performance would be a capital receipt.
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HARIHARAN KRISHNAMURTHY
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