https://www.taxtmi.com/caselaws?id=5336 SC held that insurance proceeds received by the assessee for machinery destroyed by fire are not chargeable to capital gains tax under section 45. Interpreting section 2(47), the Court ruled that "extinguishment of any rights" must be read noscitur a sociis with "sale, exchange, etc." and is confined to extinguishment arising from a transfer to a transferee, not to mere destruction of an asset. As the insurance money was paid under a reinstatement clause and did not represent consideration for a transfer of the capital asset, no taxable "transfer" occurred. The assessee's appeal was allowed and the HC judgment was set aside. en-us Wed, 14 Aug 1991 00:00:00 +0530 Mon, 08 Dec 2025 17:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5336 SC held that insurance proceeds received by the assessee for machinery destroyed by fire are not chargeable to capital gains tax under section 45. Interpreting section 2(47), the Court ruled that "extinguishment of any rights" must be read noscitur a sociis with "sale, exchange, etc." and is confined to extinguishment arising from a transfer to a transferee, not to mere destruction of an asset. As the insurance money was paid under a reinstatement clause and did not represent consideration for a transfer of the capital asset, no taxable "transfer" occurred. The assessee's appeal was allowed and the HC judgment was set aside. Case-Laws Income Tax Wed, 14 Aug 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5336