Commissioner of Income Tax vs M. P. Sugar Mills (P. ) Ltd.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1974 Supreme(All) 370

H. N. SETH, SATISH CHANDRA
Commissioner of Income Tax – Appellant
Versus
M. P. Sugar Mills (P. ) Ltd. – Respondent

Advocates appeared:
R.R. Misra, For the Appellant / Ashok Gupta, For the Respondent

JUDGMENT

Satish Chandra, J. - Messrs. M.P. Sugar Mills, Kanpur, the assessee, entered into a contract with Messrs. Krupp India Trading Company Ltd. for the purchase of a complete 450 ton sugar plant of the value of 44,000, Under the contract the plant was to be delivered in India before the end of February, 1932, by two German concerns, that is, Fried Krupp Grusonwerk A.G. and Maschinenparbrik Buchau R. Wolf A.G. The plant was delivered under the contract. The case of the assessee was that the machinery was not only delivered late but was also defective. The asses see instituted a suit against the German firms in the year 1935 for damages claiming a sum of Rs. 2,05,000 which consisted of the following items :


	Narration of the claim	Quantum of claim made Rs. P.	Quantum of claim allowed Rs. P.

1.	Cost of replacing, altering and improving the boilers, piping set, steam receivers and pressure gauges, etc.	20,443.65	20.44.3.65
2.	Damages for the number of days lost due to delay in erection and the defects & troubles in the boiler, piping set, etc.	1,11,465.81	1,11,465.81
3.	Loss of profit from 3.1.1938 to 1.6.1933 du to unsatisfactory working of the plant	27,498.19	27,498.19
4.	Interest on the above up
4.	Interest on the above up

Click Here to Read the rest of this document

1974 Supreme(All) 370

H. N. SETH, SATISH CHANDRACommissioner of Income Tax – AppellantVersusM. P. Sugar Mills (P. ) Ltd. – Respondent

H. N. SETH, SATISH CHANDRA
Commissioner of Income Tax – Appellant
Versus
M. P. Sugar Mills (P. ) Ltd. – Respondent