Deduction Eligibility: Compensation for Goods Destruction Pre-Sale Under Sec. 80IA/80IB

Colorplus Realty Limited Vs Dy. CIT (ITAT Mumbai) In the case of Colorplus Realty Limited vs. Dy. CIT, the Mumbai Income Tax Appellate Tribunal (ITAT) addressed the issue of deduction under section 80IB of the Income Tax Act for compensation received from an insurance company. Here’s a detailed analysis of the case: Introduction: Colorplus Realty Limited contested the denial of deduction under section 80IB for compensation received from an insurance company for goods destroyed before sale. The dispute arose during assessment for the A.Y. 2001-02. The assessee, engaged in garment manufact...