Income Tax : Transfer under S.2 (47) and Insurance Claims

 Income Tax : Transfer under S.2 (47) and Insurance Claims

Death of a horse cannot be treated as ‘transfer’ under Section 2(47) of the Income-tax Act, 1961 as a transfer presumes both existence of asset, as well as transferee to whom it is transferred. Receipt under insurance claim would be treated in the like manner as if receipt arises on the sale of the asset. The money received towards insurance claim on account of damage to or destruction of capital asset cannot be treated as transfer of capital assets so as to attract tax under the provisions of Section 45(1) of the Act.

Citation : *Poonawalla Estate Stud & Agricultural Farm v. CIT [2025] GCtR 1321 (Bombay)*