| Question And Answer | |
|---|---|
| Subject: | Business Loss or Capital Loss |
| Category: | Income-Tax |
| Querist: | Arun Kumar Arora |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | Block of assts, Capital loss, capital or revenue |
| Date: | May 31, 2022 |
There is only one Block Of Assets in case of a assessee. This block consists of only one car ,the WDV of the same is Rs. 5,00,ooo as on 1-4-2021.The said car is lost by way of theft on 5-9-2021. The said car is not insured at all. The above said amount of Rs. 5,00,000 will be considered as Business Loss or Short Term Capital Loss.
The said loss would be a Capital loss.
Reliance is placed on the decision of the High Court of Calcutta in the case of Calcutta Iron & Engg. Co. (P.) Ltd. v. CIT [1993] 69 Taxman 549 (Calcutta) where Assessee suffered loss of raw materials and other fixed assets on account of burglary in its factory. It was held that loss suffered on account of loss of fixed assets had to be treated as a capital loss, and was not allowable as deduction