https://www.taxtmi.com/caselaws?id=25105 The court held that the compensation received from the insurance company for the loss of a boat did not constitute a "transfer" of a capital asset under the Income-tax Act, 1961. As the boat sank at sea, there was no act leading to the extinguishment of rights, and the insurance amount was deemed indemnification for the pecuniary loss, not consideration for a transfer. Therefore, the assessee was not liable for capital gains tax on the sum received, with costs awarded in favor of the assessee. en-us Fri, 11 Mar 1988 00:00:00 +0530 Mon, 25 Jan 2010 13:32:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25105 The court held that the compensation received from the insurance company for the loss of a boat did not constitute a "transfer" of a capital asset under the Income-tax Act, 1961. As the boat sank at sea, there was no act leading to the extinguishment of rights, and the insurance amount was deemed indemnification for the pecuniary loss, not consideration for a transfer. Therefore, the assessee was not liable for capital gains tax on the sum received, with costs awarded in favor of the assessee. Case-Laws Income Tax Fri, 11 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25105