The Apex Court in the case of CIT-Guja- ratv. Saurashtra Cements Ltd. (2010) 233 CTR 209 has held that liquidated damages received from the supplier on account of delay in the supply of plant and machinery shall be treated in the nature of:
A. Capital Receipt
B. Revenue Receipt
C. Not a receipt but to be reduced from the cost of Plant & Machinery
D. Compensation
Answer:A
The Apex Court in the case of CIT-Guja- ratv. Saurashtra Cements Ltd. (2010) 233 CTR 209 has held that liquidated damages received from the supplier on account of delay in the supply of plant and machinery shall be treated in the nature of:
A. Capital Receipt B. Revenue Receipt C. Not a receipt but to be reduced from the cost of Plant & Machinery D. Compensation