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Loss due to fire

Ankush (Student) (1309 Points)

25 February 2017

Can you claim loss due to fire in case of income tax if no insurance claim is received?

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(Guest)

https://indiankanoon.org/doc/1118122/

REFER TO THIS LINK

(Guest)

This loss due to fire treated as capital loss. therefore, not incidental to business, and are added back."

sagar parakh (Group 2 Cleared) (317 Points)
Replied 25 February 2017

If neither any asset nor any money is received against loss of asset from insurance company company,then there would be a capital loss and which has no tax treatment.

Ankush (Student) (1309 Points)
Replied 26 February 2017

Thank you for your answer. But what if property worth 1 lakh is destroyed and claim received is 10 thousand. Can we claim the balance loss?

Labhansh Financial (In Practice) (33 Points)
Replied 28 February 2017

Originally posted by : Anurag
	Thank you for your answer. But what if property worth 1 lakh is destroyed and claim received is 10 thousand. Can we claim the balance loss?

By "Property" if you mean a capital asset, then you cannot claim any deduction at all. However if there is a loss of stock to the extent not covered by insurance then you can claim deduction. Read the entire judgement linked here

https://indiankanoon.org/doc/1118122/