Accounting of insurance claim on destroyed capital assets

Hi,

Our company received insurance claim on destroyed capital asset and auditors asking to reduce the new capital asset value by insurance claim received on destroyed asset.

To my knowledge, insurance claim received to be shown as Misc.  / other income, book value of asset destroyed to be written off and capitalize fully the value of asset bought.

Can you help me in this by providing to me any note / clarification by ICAI / any other juridicial body.

Regards.