compensation for loss of profit, assetsect

327 views 1 replies

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.

Replies (1)

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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