Income Tax Appellate Tribunal Itat Kolkata Court February 1993 Judgments Home Cases Income Tax Appellate Tribunal Itat Kolkata 1993 Page 1 of about 1 results (0.018 seconds)

Indian Shipping Co. Ltd. Vs. Assistant Commissioner of

Court : Income Tax Appellate Tribunal ITAT Kolkata

Reported in : (1993)45ITD352(Kol.)

1. These cross appeals relate to the assessment year 1986-87 for which the accounting year ended on 30-6-1985.2. In the appeal by the assessee, the first question is whether the CIT (Appeals) was justified in directing the Assessing Officer to treat the amount of Rs. 8,35,000 as long term capital gain received by the assessee from the Insurance Company. The second issue is whether the departmental authorities are justified in treating the amount of Rs. 1,65,000 under Section 41(2) of the IT Act.3. During the year of account, the vessel "M.V. Chopra" belonging to the assessee sank in the sea near Goa. The assessee received a sum of Rs. 10 lacs from the Insurance Company for the loss of the ship. The Income-tax Officer treated the amount as the business receipt of the assessee and taxed the same accordingly. On appeal by the assessee, the CIT (Appeals) took the view that the amount received from the Insurance Company for the loss of the ship cannot be treated as the business income of t...