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Judgment Reserved On : 3 July 2025.
Judgment Pronounced On : 9 July 2025.
Judgment (Per: Sandeep V. Marne, J.)
1) These four Appeals are filed raising a common issue as to
whether the receipt towards insurance claim in respect of dead horses
can be treated as ‘profits’ for the purpose of taxation under Section 41(1)
of the Income Tax Act, 1961 (the Act) ? The horses, being treated as
capital assets by the Revenue, whether the amount of insurance claim
received towards loss of such capital assets, which would ideally be
taxable only under Section 45 of the Act as capital gain, can be taxed by
treating the claim amount as ‘profits’ under Section 41(1) of the Act?
After noticing that the income is not taxable under one head, whether it
is permissible to shift the same to another head, for bringing the same
to taxation?
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