9911796707
TMI Blog2014 (12) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... "(i) Whether on the facts and in the circumstances of the case, the Income - tax Appellate Tribunal was right in law in holding that the compensation received by the appellant from the Insurance Company on account of destruction of Wind Mill was taxable under Section 50 of the Income-Tax Act, 1961? (ii) Whether on the facts and in the circumstances of the case, the provisions of Section 41(2) of the Income Tax Act, 1961 are applicable? 3. The assessee, engaged in the manufacturing of petrochemicals and job work, filed original return of income on 30.12.1999 disclosing total income at Rs. 1,95,54,060/-. The assessee, thereafter filed revised return on 27.11.2000 and disclosed revised income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing for the revenue supported the impugned orders passed by the Tribunal as well as the CIT(A) and submitted that the same having been passed after considering the facts on record, do not call for any interference by this Court. 6. Having heard learned advocates for both the sides and having gone through the records of the case, we are of the opinion that the question no. 1 is directly governed by the decision of the Madras High Court in the case of Neelamal Agro Industries Ltd. (supra). The Madras High Court in the said decision has held that when a thing was destroyed by fire the capital asset was no longer available for being owned, used or enjoyed by anyone. With the destruction of the asset, the rights of the assessee in that asset al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the written down value shall be chargeable to income - tax as income of the business of the previous year in which the moneys payable become due. 7.1 Section 32 of the Act was amended the Amendment Act to provide for allowance of depreciation in the case of assets of an undertaking engaged in generation or generation and distribution of power on straight line method. Section 41 was amended to provide for computation of depreciation and also the amount chargeable to income tax when such an asset is sold, discarded, demolished or destroyed in the previous year. 7.2 The Tribunal has committed an error in upholding the conclusions of the CIT(A) after taking into consideration the facts and law which are not emanating from the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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