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2023 (5) TMI 59 - AT - Income TaxCharacterization of receipt - receipts from the builder for alternate accommodation - receipt shown as a capital accounts receipt from the builders - AO rejected the submissions of the assessee and held that it is not a capital receipt and clearly a revenue receipt in the form of alternate accommodation rent provided by the builder for development of his residences - also assessee has not utilized any amount of its receipt for his alternate accommodation, he treated the above amount as income of the assessee and taxed under the head “income from other sources”. HELD THAT:- It is fact on record that assessee has received from the builder for alternate accommodation. However, assessee has not utilized these funds for any accommodation. However, he adjusted and lived with his parents. It clearly indicates that even though assessee has not utilized the rent received for his accommodation, however, he has faced hardship by vacating the flat for redevelopment and also adjusted himself during the period. As relying on case of Smt Delilah Raj Mansukhani [2021 (3) TMI 252 - ITAT MUMBAI] we also hold that the above receipt of compensation for hardship is in the nature of capital receipt. Accordingly, the addition made by the Assessing Officer is deleted. Ground raised by the assessee is allowed.
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