Mayank Shyamsukha (CA FINAL) (119 Points)
26 February 2010
Hi,
There is only one car in the block in the firm, which has WDV on 1/04/2009 Rs. 200,000/-. Unfortunately, the car was stolen in 2009-10(FY). Now the car owner(who is the partner) get the compensation from Insurance Company Rs. 100,000/-. Then
How such compensation is taxable.Can we claim Depreciation for AY 2010-2011. 
CA Mohit Agrawal
(Chartered Accountant)
(371 Points)
Replied 26 February 2010
It will be deemed as sales consideration Rs.100000/- and there will be short term capital loss of Rs.100000/- no depreciation can be claimed as the block does not exist.
Mayank Shyamsukha
(CA FINAL)
(119 Points)
Replied 26 February 2010
Hi Mohit,
"It will be deemed as sales consideration Rs.100000/- and there will be short term capital loss of Rs.100000/- no depreciation can be claimed as the block does not exist"
in reply to your answers :
How it can be treated as transfer. And how the sales consideration is equal to STCG and how WDV can be reduced. Because u/s 43(6) the compensation received on account of theft is not covered and hence we can claim depreciation na. u/s. 45(1A) also not cover the insurance claim on account of theft then how is STCG???
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