Supreme Court of India

Commissioner of Income Tax, Gujarat v. M/s. Saurashtra Cement Ltd.

Neutral citation
Reported as [2010] 8 S.C.R. 404
Bench D.K. Jain and C.K. Prasad JJ.
Decided 9 July 2010

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

From the headnote

Income Tax Act, 1961 - Liquidated damages received by assessee from supplier of the cement plant and machinery 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 capital asset 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.

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