| Question And Answer | |
|---|---|
| Subject: | Treatment of Insurance claim received for theft of car-its treatment in Books of Accounts and under I.Tax Act |
| Category: | Income-Tax |
| Querist: | Arun Kumar Arora |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | capital or revenue, loss |
| Date: | June 3, 2022 |
Treatment of Insurance claim received for theft of car-its treatment in Books of Accounts and under I.Tax ActTreatment of Insurance claim received for theft of car-its treatment in Books of Accounts and under I.Tax Act
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
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