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TMI Blog2024 (1) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... ven according to Mr Sanjeev Menon, learned standing counsel, who appears on behalf of the appellant/revenue, concerns the addition made by the Assessing Officer (AO) with regard to loss claimed by the respondent/assessee due to goods being damaged/destroyed by fire. 4. The record shows that the respondent/assessee, during the relevant period, was engaged in manufacturing and trading of goods, as also export of home furnishing articles, mobile phones, electronics and electric goods. 5. It appears that the fire occurred on 05.12.2014; which, according to the respondent/assessee, entailed loss of trading goods. On account of the said loss, the respondent/assessee had claimed a deduction of Rs. 5,24,06,053/-. 6. Against this backdrop, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) also buttressed its conclusion by noting that the concerned insurance company had not finalised the claim preferred by the respondent/assessee. 9. Given this backdrop, the respondent/assessee preferred an appeal with the Tribunal. The Tribunal, as noted above, reversed the view taken by the CIT(A) and AO. 10. It is relevant to note that the Tribunal adverted to the assertions made on behalf of the respondent/assessee that the incident of fire took place on 05.12.2014 and an FIR was lodged on 15.12.2014. 11. Furthermore, the Tribunal also had regard to the judgement relied of the respondent/assessee that the destruction of stock-in-trade resulted a revenue loss. [See Motamal Jethamal v. Commissioner of Income-Tax, (1947) 15 ITR 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "The assessee company stocks have been insured against Fire from national Insurance Co. Ltd. The entire loss of stock worth Rs. 5.25 Cr. Was shown as extra ordinary item/ Exceptional item in Statement of Profit and Loss. The assessee company is vigorously following the insurance company for recouping the losses. We enclosed the following correspondence made with the insurance company : - Letter dated 26.06.2017 written by the assessee to the Chairman and Managing Director of National Insurance Co. Ltd complaining the Divisional Office not settling the claim. Letter dated 27.07.2017 written by the assessee company to the IRDS complaining the National Insurance Co. Ltd. Insurance claim as and when received from insurance compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocessed by the concerned insurance company. The CIT(A)‟s assertion that the respondent/assessee had not seriously pursued the insurance claim is belied by the correspondence adverted to in the assessment order; a reference to which has been made hereinabove. 24. The record also shows that the respondent/assessee, in our view, quite correctly, submitted that if and when he receives any sum from the concerned insurance company, it would be offered to tax under Section 41(1) of the Act. 25. The plea raised by Mr Menon before us is also not sustainable for another reason, which is that in the questions proposed in the appeal, nothing of this kind has been indicated. 25.1. The proposed questions veer around the following two aspects: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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