Assessee did not honour its commitment to take delivery against some purchase orders placed on foreign sellers consequent upon price of palm oil declining. Damages paid was claimed as business loss. AO held that the loss is speculative loss. Tribunal allowed  the loss as business loss. Dismissing the appeal of the revenue High Court held that when a party in breach accepts claim for damages, what actually happens is disposal of a dispute and not any settlement of kind that is envisaged by word settled used in S 43(5). Accordingly up held that order of the Tribunal.