Disallowance of goods lost due to fire - addition invoking ...

Goods Lost in Fire Not Deductible u/s 29 of Income Tax Act Despite Insurance Compensation.

November 24, 2020

Case Laws     Income Tax     AT

Disallowance of goods lost due to fire - addition invoking section 29 - Moment the insurance Co determines the loss in terms of the insurance policy obtained by the assessee from the insurance company, naturally the assessee would be reimbursed or compensated for the same. - It does not mean that assessee has not incurred the losses. The accident of fire at the premises of the assessee in which it has lost goods due to the fire is one incident. The action of the assessee of obtaining the insurance is altogether a different act to mitigate the loss incurred by the assessee. - AT

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