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PETITIONER: COMMISSIONER OF INCOME-TAX, NAGPUR
Vs.
RESPONDENT: RAI BAHADUR JAIRAM VALJI AND OTHERS
DATE OF JUDGMENT: 07/10/1958
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA GAJENDRAGADKAR, P.B. SARKAR, A.K.
CITATION: 1959 AIR 291 1959 SCR Supl. (1) 110 CITATOR INFO : E&D 1959 SC 814 (24,52,54) R 1959 SC1352 (8) RF 1961 SC1579 (30,31,34) RF 1964 SC 758 (12) RF 1965 SC 65 (5,31,33) R 1971 SC1590 (9) R 1972 SC 386 (12) R 1973 SC 515 (9) R 1973 SC1011 (15,20) D 1987 SC 500 (36) RF 1992 SC1495 (31)
ACT: Income Tax-Capital or Revenue receipt-Compensation for premature termination of contract-Whether trading receipt -Liability to tax-lndian Income-tax Act, 1922 (XI of 1922).
HEADNOTE: The respondent had been carrying on business in the produc- tion and supply of limestone since 1920, and under an agreement entered into with the Bengal Iron Company was supplying all its requirements of limestone and dolomite. Sometime later the Indian Iron and Steel Company took over all the assets and liabilities of the former company. Subsequently differences having arisen between the respondent and the Indian Iron and Steel Company they entered into an agreement on May 9, 1940, in settlement of all the d...