https://www.taxtmi.com/caselaws?id=12110 Whether insurance compensation for partial damage to plant and machinery was properly assessed was the dominant issue. The HC held the assessment order showed no application of mind: the receipt was not discussed, the supposed "adjustment statement" was neither annexed nor examined, and the AO failed to determine whether the amount was taxable or excludable as a capital receipt not chargeable as capital gains, despite its credit in the profit and loss account and partial use for dividend payment. This omission rendered the assessment both erroneous and prejudicial to the Revenue. Consequently, the Commissioner validly invoked revisionary jurisdiction under s. 263 and the AO was directed to re-examine the tax treatment in accordance with law. en-us Mon, 30 Sep 2002 00:00:00 +0530 Thu, 25 Dec 2025 12:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12110 Whether insurance compensation for partial damage to plant and machinery was properly assessed was the dominant issue. The HC held the assessment order showed no application of mind: the receipt was not discussed, the supposed "adjustment statement" was neither annexed nor examined, and the AO failed to determine whether the amount was taxable or excludable as a capital receipt not chargeable as capital gains, despite its credit in the profit and loss account and partial use for dividend payment. This omission rendered the assessment both erroneous and prejudicial to the Revenue. Consequently, the Commissioner validly invoked revisionary jurisdiction under s. 263 and the AO was directed to re-examine the tax treatment in accordance with law. Case-Laws Income Tax Mon, 30 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12110