Insurance claim received for death of horses are capital receipts: Bombay HC

Poonawalla Estate Stud & Agricultural Farm Vs CIT (Bombay High Court) Bombay High Court held that the entire amounts of insurance claim received for death of horses is to be treated as capital receipt governed only by provisions of Section 45(1) of the Income Tax Act. Hence, the same is not chargeable to tax. Accordingly, appeal allowed. Facts- The issue involved herein is whether the receipt towards insurance claim in respect of dead horses can be treated as ‘profits’ for the purpose of taxation under Section 41(1) of the Income Tax Act, 1961; The horses, being treated as capital asse...