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1965 (12) TMI 39 - SUPREME COURTWhether the war damage receipts of $13,889 and $85,479 constitute income of the assessee for assessment in the years 1954-55 and 1956-57 respectively ? Held that:- When the assessee put forward the claim for compensation under the scheme framed by the Central Board of Revenue that its entire property had been lost through enemy action and it obtained relief under the special scheme on that basis, the value of the assets must after receipt of compensation be taken to be nil, and the assessee by not writing off the value in his books of account on and after accepting the benefits of the special scheme could not invest those assets for the purpose of assessment to tax with any book value which was liable to be taken into account. Compensation received in replacement of those assets by the assessee from the war damage commission must therefore be treated in its entirety as profit liable to tax. Appeal dismissed.
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