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2013 (11) TMI 206 - AT - Income TaxDeduction u/s 80-IB(4) on account of insurance claim received on loss of stock Compensation received for not supplying raw material The insurance claim of Rs.90.91 lakh accepted by the insurance company comprised of the loss of stock-in-trade to the tune of Rs.85.07 lakh and the remaining amount towards plant and machinery - Held that:- The assessee adjusted rs. 80 lakhs in the previous year Out of Rs. 10.91 lakhs from the remaining loss a sum of Rs.5.84 lakh was towards Plant and machinery Following M/s.J.K.Aluminium Co. v. ITO [2011 (4) TMI 90 - ITAT NEW DELHI] - Deduction u/s 80-IB(4) allowed for Rs.5.07 lakh representing insurance claim in respect of loss of raw material - Decided in favour of the assessee. Compensation received for not supplying raw material the compensation amount of Rs.3 lakh received by it from Crescent Chemsole Pvt. Ltd - Held that:- The assessee had to purchase raw materials from the market at higher price - The assessee has to show that there is a direct nexus of such income with the industrial undertaking Partly allowed in favour of the assessee.
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