This brings us to the relevant question of whether commercial transactions can have data identified by private agreements that are prospective or retroactive at the time of execution. Applying the principles of fundamental contract law, it does not seem appropriate to conclude a business transfer contract with a retroactive or prospective “date”. In order to answer this question, it is necessary to refer to certain judgments rendered by the Indian courts, although with regard to taxation. These judgments are the quintessence, as they are the most available legal literature on this trivial subject. One such decision is CIT against Tea Producing Company of India Limited (48 ITR 200) (“Tea Producing Case”), in which Hon`ble Calcutta High Court held that “the parties may enter into agreements to transfer transactions from a specified date or date”. The corresponding extract from the judgment is extracted below: in these judgments, the facts illustrate the transactions between parties for which specific data are defined for the transfer of transactions, either before or after the performance of the contract. It should also be noted that neither the courts nor the revenues have questioned or challenged the concept of how a business sale might have an identified date. The transactions examined in these judgments clearly have a retroactive or prospective date of sale. `4. If a transaction carried out by A is transferred from a specified date to B, B may be taxed for the period following the change of ownership only. A and B may agree that all profits or losses of the business from a date prior to the date of change of ownership will be in B`s account. In this case, A B must claim accounts for the income and profits of the company that falls under the duration of the contract, and A may be asked to have carried out the transaction as a representative of B from the agreed date…………… The consequence of the termination clause is that in the event of an infringement, the rent is both retroactive and prospective, i.e.
payable. the tenant also had to compensate for the difference between the roof rent in the rental agreement and the lower rent paid in recent years under the conditions of the secondary letter. Companies that negotiate termination clauses in contracts should avoid imposing financial penalties for breach of contract that apply retroactively or risk the clause being found to be punishable following a recent ruling and therefore unenforceable. . . .