No STCG in case insurance claim less than amount of actual expenditure on re-construction

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

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