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2023 (2) TMI 923 - AT - Income TaxNature of receipt - addition on account of Hardship Compensation received - revenue receipt or capital receipt - assessee is a member of the MIG Co-operative Housing Society Ltd. - As per assessee payment is a hardship allowance to cover the cost of prospective loss of place of residence and the consequential hardship thereof, including loss of furniture, fixtures, and other inbuilt conveniences like fresh gas connections and various other facilities including relocation of residence - HELD THAT:- We find that while dealing with a similar issue of taxability of hardship compensation, the coordinate bench of the Tribunal in Lawrence Rebello [2021 (10) TMI 63 - ITAT INDORE] held that the benefit received by the assessee in the form of bigger size of flat and amount received as hardship allowance from the developer is a capital receipt, which cannot be treated as revenue receipt for taxing as income - Decided in favour of assessee.
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