Insurance Claim received of Depreciable Asset

RAHUL RAJU (124 Points)

12 January 2022  
WDV of Asset was Rs.4,00,000/-.
Asset was destroyed by Fire, Insurance Claim received Rs.1,00,000.
Should I book loss of Rs 3,00,000 in P&l and whether it can claimed as expense in Income Tax Act ? Or wherther insurance claim is to be shown as Capital Gain ?