Supreme Court · 2010 INSC 399 · Decided 9 July 2010
Commissioner of Income Tax, Gujarat v. M/S. Saurashtra Cement LTD.
- Court
- Supreme Court of India
- Citation
- 2010 INSC 399 · [2010] 8 S.C.R. 404
- Case number
- CIVIL APPEAL No. 3702/2003
- Decided
- 9 July 2010
- Bench
- D.K. JAIN, C.K. PRASAD (2-judge bench)
- Outcome
- Dismissed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 256(1)
Headnote
Income Tax Act, 1961 - Liquidated damages received by assessee from supplier of the cement plant and machinery C on account of delay in supply of plant - Held: Is to be treated as capital receipt - The delay in procurement of capital asset i.e. the cement plant amounted to sterilization of the assessee - The amount received by the assessee towards compensation for sterilization of the profit o earning source, being not in the ordinary course of their business, was a capital receipt in the hands of the assessee. The respondent-assessee was engaged in manufacture of cement. It entered
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