2003 (7) TMI 39

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.... facts in holding that the ship which has disappeared could be considered as destroyed and consequently the provisions of section 41(2) of the Income-tax Act, 1961, could be attracted?" The facts of the case are as follows: The assessee is a public limited company engaged in the business of operating ships. The assessee-company owned a ship by name "Kairali" which was reported to be missing from July 3, 1979, when on the high seas. Neither the ship nor the crew were traced till date. A committee of Lloyd's London at its meeting held on August 20, 1979, passed a resolution posting the ship as missing. Presuming total loss as provided in section 58 of the Marine Insurance Act (Indian Act), the company lodged a claim with the Director, K....

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....ritten down value, so much of the excess as does not exceed the difference between the actual cost and the written down value shall be chargeable to income-tax as income of the business or profession of the previous year in which the moneys payable for the building, machinery, plant or furniture became due." The Tribunal has now held that the ship has been destroyed. The question is whether this interpretation made is correct. There is no dispute that the ship is missing. But that does not mean that the ship is destroyed. A reading of section 41(2) of the Act will show that there will be physical act of destruction. Then only the section will apply. The word "destroy" is referred to in Webster's New 20th Century Dictionary, second edi....