https://www.taxtmi.com/caselaws?id=60075 The ITAT ruled in favor of the assessee, holding that the compensation received for the loss of a capital asset (a sunken ship) from an Insurance Company was not taxable as long term capital gain under section 45 of the IT Act. The judgment emphasized that such compensation did not constitute a transfer within the meaning of the Act. However, the ITAT upheld the taxation of another amount under section 41(2) of the Act as a "Balancing charge," as it related to a destroyed asset for which depreciation had been claimed earlier. The ITAT differentiated between capital assets and business income, concluding that the compensation for a capital asset loss is not taxable as business income. en-us Thu, 18 Feb 1993 00:00:00 +0530 Mon, 03 Jan 2011 16:01:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60075 The ITAT ruled in favor of the assessee, holding that the compensation received for the loss of a capital asset (a sunken ship) from an Insurance Company was not taxable as long term capital gain under section 45 of the IT Act. The judgment emphasized that such compensation did not constitute a transfer within the meaning of the Act. However, the ITAT upheld the taxation of another amount under section 41(2) of the Act as a "Balancing charge," as it related to a destroyed asset for which depreciation had been claimed earlier. The ITAT differentiated between capital assets and business income, concluding that the compensation for a capital asset loss is not taxable as business income. Case-Laws Income Tax Thu, 18 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60075