MARYBONG & KYEL TEA INDUSTRIES LTD. vs COMMISSIONER OF INCOME TAX. CALCUTTA

The Supreme Court addressed whether compensation received from insurers for fire damage constituted a 'transfer' under Section 2(47) of the Income Tax Act, 1961, and if the excess compensation was taxable as capital gains under Section 45. The Court held that when an insurance company compensates for total loss and takes over the remaining property, it does not constitute a transfer for capital gains purposes. The appeals were allowed, reversing the Calcutta High Court's decision and ruling in favor of the assessee.