Applicability of Income tax on excess insurance
This query is : Resolved
25 May 2020
Sir,
We purchased a car during F.Y-2017-18 for Rs. 14,00,000/- (approx). After completion of the year the depreciated value of the car is Rs.13,05,000/- (As per Company act) in books during F.Y. 2018-19. This car stolen during the first quarter of F.Y. 2018-19 and we claimed insurance. We got the claim during 3rd quarter of F.Y.2018-19 for Rs. 14,00,000/- (full value of the vehicle). We adjusted the book entry by reducing the depreciated amount from gross block against insurance claim. Apparently, during finalization of F.Y.2018-19, we reduced the excess amount of insurance claim received ( 1400000-1305000=95000/-) from our taxable income along with Dep. as per Income tax. But CPC added back this amount to our taxable income and calculated tax on it in our Intimation u/s. 143(1).
Please clarify how to rectify this.
Thanks
We purchased a car during F.Y-2017-18 for Rs. 14,00,000/- (approx). After completion of the year the depreciated value of the car is Rs.13,05,000/- (As per Company act) in books during F.Y. 2018-19. This car stolen during the first quarter of F.Y. 2018-19 and we claimed insurance. We got the claim during 3rd quarter of F.Y.2018-19 for Rs. 14,00,000/- (full value of the vehicle). We adjusted the book entry by reducing the depreciated amount from gross block against insurance claim. Apparently, during finalization of F.Y.2018-19, we reduced the excess amount of insurance claim received ( 1400000-1305000=95000/-) from our taxable income along with Dep. as per Income tax. But CPC added back this amount to our taxable income and calculated tax on it in our Intimation u/s. 143(1).
Please clarify how to rectify this.
Thanks
25 May 2020
CPC's addition is in order no rectification is possible.
26 May 2020
CPC INTIMATION U/S 143(1) IS OPEN FOR RECTIFICATION U/S 154 AND U MAY FILE APPEAL ALSO .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Booth for sales promotion
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
