1994 (11) TMI 45 - HC - Income Tax

Capital Gains, Computation Of Capital, Insurance Company, New Industrial Undertaking, Special Deduction, Transfer Of Property

Summary

The High Court of Kerala ruled in favor of the assessee regarding the assessment of short-term capital gains on compensation received for damaged machinery. The court cited a Supreme Court decision stating that compensation for damage does not constitute a transfer of property, therefore not attracting capital gains tax. The second question was decided against the assessee based on a different Supreme Court decision.