Indian Kanoon - Search engine for Indian Law

For similar reasons, the assessee was entitled to succeed in respect of claims received from insurance company and transporters. The payment of freight charges to the transporter as well as the premium to the insurance company is directly connected with the activity of the industrial undertaking affecting the profits of the business and consequently, refund thereof has a direct nexus with such business activity. The details furnished before the Tribunal clearly showed that amount received from transproters was on account of shortage of rubber and tyres transported. Further the claim from insurance company was on account of the damage of stock due to flood. So, there was direct nexus between the amount received from the transporter/insurance companies and the activity of the industrial undertaking. Accordingly, it was to be held that such receipts formed part of the profits derived from industrial undertaking."