Supreme Court · 1991 INSC 194 · Decided 14 August 1991
Vania Silk Mills (P) LTD. v. Commissioner of Income-Tax, Ahmedabad
- Court
- Supreme Court of India
- Citation
- 1991 INSC 194 · [1991] 3 S.C.R. 577
- Case number
- CIVIL APPEAL No. 1106/1976
- Decided
- 14 August 1991
- Bench
- K.N. SINGH, P.B. SAWANT (2-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 2(47), 41(2), 45
Headnote
B Income Tax Act, 1961: Ss. 2(47), 41(2), 45-Capital asset- Destruction of-Money received as insurance claim-Nature of- Whether chargeable to capital gains tax. The appellant company purchased machinery worth Rs.2,81,741 c in the year 1957 and gave it on hire to another company which insured the damage to the machinery of the appellant. On a settle- ment of the insurance claim the lendee company paid to the appellant a snm of Rs.6,32,533 on account of the destruction of its machinery. The difference between the actual cost of the machinery and its written D down valne worked out to
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