https://www.taxtmi.com/caselaws?id=5414 SC held that the devaluation surplus received by the assessee on settlement of an insurance claim for loss of imported copper ingots was a capital receipt and not taxable as business income. The assessee's business was manufacturing radiators, not trading in ingots; the ingots never reached its factory or entered its trading cycle, and hostilities between India and Pakistan had blocked and sterilised them as stock-in-trade. Consequently, the necessary nexus between the ingots and the assessee's business income never arose. The compensation, including the surplus due to exchange fluctuation, represented a money equivalent of lost capital assets, arising from fortuitous circumstances, and could not be taxed as revenue receipt. Both appeals were allowed. en-us Tue, 30 Mar 1993 00:00:00 +0530 Fri, 12 Dec 2025 18:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5414 SC held that the devaluation surplus received by the assessee on settlement of an insurance claim for loss of imported copper ingots was a capital receipt and not taxable as business income. The assessee's business was manufacturing radiators, not trading in ingots; the ingots never reached its factory or entered its trading cycle, and hostilities between India and Pakistan had blocked and sterilised them as stock-in-trade. Consequently, the necessary nexus between the ingots and the assessee's business income never arose. The compensation, including the surplus due to exchange fluctuation, represented a money equivalent of lost capital assets, arising from fortuitous circumstances, and could not be taxed as revenue receipt. Both appeals were allowed. Case-Laws Income Tax Tue, 30 Mar 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5414