9911796707
TMI Blog2002 (5) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the order of the ld. CIT(A) dated 4-11-1995 for assessment year 1985-86. The only ground raised in the appeal is against disallowance of Rs. 3,18,311 being business loss on short receipt of insurance claim. 2. Assessee firm derives income from plying of country crafts. It was observed that during the accounting year relevant to assessment year 1983-84, one of the vessels belonging to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Assessing Officer disallowing the loss was upheld. However, he held the reimbursement from the insurance company to be a capital receipt and deleted the addition thereof from the total income. 4. The contention of the ld. Counsel was that the impugned expenditure had either to be debited as revenue expenditure or had to be debited to the insurance company, which in fact, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k into operation to carry on the on-going business of the assessee. No reason whatsoever has been given by the CIT(A) to justify the view taken by him barring the bald statement made, by its very nature, was a capital expenditure. We fail to understand as to why it cannot be considered as current repairs in its ordinary course. Thus, we hold that the expenditure incurred by the assessee was of rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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