COMMISSIONER OF INCOME TAX Vs. SESHASAYEE INDUSTRIES LIMITED

JUDGEMENT

(1.) THE following two questions have been referred to us at the instance of the Revenue.

(2.) AT the instance of the assessee, the following question has been referred to us :

(3.) THAT clause in so far provides that price reduction is to be effected only when the delay referred to therein is a consequence of the assessee's failure to perform the contract within the time fixed by the contract or any extension thereof. As to whether the delay that had occurred was due to. the assessee's failure, was purely a question of fact. The assessee had not admitted before the Assessing Officer or to the other party to the contract that the delay was due to its failure and that it had as a consequence become liable for payment of damages.