Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 252 - AT - Income TaxNature of receipt - Compensation received by the assessee towards displacement in terms of Development Agreement - revenue receipt OR capital receipt as the property has gone into re-development - HELD THAT:- We find that compensation received by the assessee towards displacement in terms of Development Agreement is not a revenue receipt and constitute capital receipt as the property has gone into re-development. In such scenario, the compensation is normally paid by the builder on account of hardship faced by owner of the flat due to displacement of the occupants of the flat. The said payment is in the nature of hardship allowance / rehabilitation allowance and is not liable to tax. We set aside the findings of the ld. CIT(A) on this issue and direct the AO to delete the addition made.
|