For VAT treatment u have to refer the relevant VAT Act & rules made thereunder.
Loss on account of Theft is an "Extra-ordinary item" in terms of AS-5 -
Extraordinary items should be disclosed in the statement of profit
and loss as a part of net profit or loss for the period. The nature and the
amount of each extraordinary item should be separately disclosed in the
statement of profit and loss in a manner that its impact on current profit
or loss can be perceived.
Profit from Ordinary Activities - xxxx
Less: -Loss on account of Theft - xxx
Profit before Taxes - xxxx
(Next year the amount of Insurance claim received will be added in a same manner)