Case Law Details
M/s. K.S. Cold Storage Vs ACIT (ITAT Pune)
Conclusion: Where the amount of insurance claim was less than the amount of actual expenditure incurred on re-construction/renovation, no short term capital gain u/s. 45(1A) could be charged under such circumstances.
Held: In the present case, assessee received insurance claim of Rs.1.35 crore on account of land and incurred actual expenditure on renovation/re-construction of Rs.3,55,56,948/-. Following the decision in J.R. Enterprises and in Chemfab Alkalis Ltd. it was held the amount of insurance claim was less than the amount of actual expenditure incurred on re-construction/renovation, no short term capital gain u/s. 45(1A) could be charged under such circumstances. Respectfully following the precedent, the amount of Rs. 1 crore was not chargeable to tax.
FULL TEXT OF THE ITAT JUDGEMENT
These two cross appeals – one by the assessee and other by the Revenue arise out of the order passed by the CIT(A)-1, Nashik on 03-06-2014 in relation to the Assessment Year 2010-11.
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