Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 771 - ITAT KOLKATANature of receipt of Damage for unauthorised occupation of property - Taxability of amount in question received form Punjab State Industrial Development Corporation “PSIDC” - income from house property or income from other sources - HELD THAT:- Assessee had entered into the lease agreement with the PSIDC on 28.10.1993 for a period of three years upto 31.10.1996. The said lease agreement sufficiently indicates that no landlord / tenant existed between two parties after 31.10.1996. We further find from the arbitration award to this effect dated 28.04.1997 that the assessee had been awarded damages with interst than rental amount of the property in issue. This arbitration award forms part of case record in pages 17 to 25 of the paper book. All this leads to irresistible conclusion that assessee has not received any rent from this lessee / tenant but damages amounting neither assessable under the head “house property income” nor “ income from other sources” going by the various case law discussed in the CIT(A)’s order (supra). We reiterate that hon’ble jurisdictional high court’s in Smt. Lila Ghosh [1993 (1) TMI 11 - CALCUTTA HIGH COURT] has already settled the law that mense profits are in the nature of damages which are not chargeable to tax being in the nature of a capital receipt. We apply the very analogy in the case of damages as well to conclude that both the lower authorities have erred in treating the assessee’s damages amount as chargeable to tax. The assessee therefore succeeds in its former substantive ground.
|