Allowing the appeal of the assesse the Tribunal held that the amount received by the assessee from insurance company as a compensation due to fire on cold storage being destroyed cannot be assessed as capital gains as the insurance claim was Rs. 1.35 crores on account of loss of goods and cold storage plant and actual expenditure incurred on reconstruction/renovation of cold storage was Rs. 3.55 crores. ( AY.2010-11) ( AY.2010-11)
K.S. Cold Storage v. ACIT (2019) 174 ITD 485/ 175 DTR 433/ 198 TTJ 905 (Pune)(Trib.)
S. 45 : Capital gains-Cold storage–Destruction by fire-Insurance claim-Insurance claim received was Rs.1.35 crores and reconstruction / renovation expenses incurred was Rs.3.55 crores-Amount received as claim cannot be assessed as short term capital gains. [S.45 (IA)]