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2024 (1) TMI 599 - AT - Income TaxNature of receipt - receipt of compensation - capital receipt or income from other sources - assessee submitted that he has received certain sum from the developer as the shifting compensation - compensation received by the assessee which is the corpus amount payable by the developer a compensation payable by the developer to the individual members to meet the expenses for shifting / re-shifting and compensation to the individual members to meet the cost for temporary transit accommodation to be arranged by the individual members during the period of construction of the proposed building HELD THAT:- It is fact on record that assessee has entered into development agreement through the society and only due to the fact that the assessee being member and consigning party to the re-development Agreement, assessee was compensated with the shifting compensation for personal belongings as well as accommodation for an initial period of 24 months including corpus amount. It clearly shows that the above payments made by the developer only to compensate the assessee towards the shifting as well as the additional burden on the corpus funds. Therefore, it clearly shows that it is a compensation towards hardship faced by the assessee. As relying on Smt Delilah Raj Mansukhani [2021 (3) TMI 252 - ITAT MUMBAI] we are inclined to agree with the submissions of the Ld. AR of the assessee and hold that the above receipt of compensation for hardship is in the nature of capital receipt. Further, we observe that assessee has submitted that the corpus fund received by her was already declared as additional income subsequently on receipt basis in A.Y. 2015-16. Therefore, we direct the AO to verify the same and if it is found proper, the addition on corpus fund may be deleted. Accordingly, the addition made by the AO is deleted. Ground raised by the assessee is allowed.
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