During the assessment proceedings, AO observed from the capital account that assessee has shown a receipt as a capital accounts receipt from the builders. It was submitted that such amount is a monthly rental compensation from the builder for rent of alternate accommodation as his building has gone for redevelopment.

The ITAT observed that the assessee has received Rs. 3,73,191/-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, assessee has faced hardship by vacating the flat for redevelopment and also adjusted himself during the period. Coordinate Bench in case of Smt. Delilah Raj Mansukhani vs. ITO (ITA No. 3526/Mum/2017) was also relied upon. It was concluded that receipt of compensation for hardship is in the nature of capital receipt and accordingly addition was deleted. [ITA No. 2823/ Mum/2022 dt. 03/04/2023 (AY 2013-2014)