M/S POONAWALA ESTATE STUD and AGRICULTURAL FARM vs COMMISSIONER OF INCOME-TAX.

Neeta Sawant ITXA-541-2003+3 others-FC IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 541 OF 2003 WITH INCOME TAX APPEAL NO. 535 OF 2003 WITH INCOME TAX APPEAL NO. 540 OF 2003 M/s. Poonawalla Estate Stud & Agricultural Farm …Appellant : Versus : Commissioner of Income Tax ….Respondent Alongwith INCOME TAX APPEAL NO. 175 OF 2005 M/s. Poonawalla Estate Stud & Agricultural Farm …Appellant : Versus : Dy. Commissioner of Income Tax, Special Region-4 ….Respondent Mr. P.J. Pardiwalla, Senior Advocate with Mr. B .V. Jhaveri and Ms. Bhargavi Raval, for Assessee-Appellant. Mr. Akhileshwar Sharma, for the Revenue-Respondent. Page No.1 of 28 9 July 2025 Neeta Sawant ITXA-541-2003+3 others-FC CORAM : ALOK ARADHE, CJ. & SANDEEP V. MARNE, J. Judgment Reserved On : 3 July 2025. Judgment Pronounced On : 9 July 2025. Judgment (Per: Sandeep V. Marne, J.) 1) These four Appeals are filed raising a common issue as to whether the receipt towards insurance claim in respect of dead horses can be treated as ‘profits’ for the purpose of taxation under Section 41(1) of the Income Tax Act, 1961 (the Act) ? The horses, being treated as capital assets by the