compensation for loss of profit, assetsect

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self employed

43 Points Posted on 30 June 2011

Due to Metrpo rail Project rented shop got damaged and shifted to some other place.

effect:how to treate the compensation given for

1. Damage of the shop furniture & fittings etc is it short term gain?

2.Loss of profit due to shut down & relocation of the shop. Business /profession head?

kindly provide any recent caselaws, if any.

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dear gautham

If depreciable assets get destroyed then compensation is received shall be deducted from block of asssets.

If block of assets is completely destroyed then s 50 is applicable. STCG or loss may arise.

Loss of profit due to relocation of shop etc is notional loss no set off etc allowed.

thanks

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