The Tribunal condoned the delay of 1566 days in filing of the appeal by the assessee . The assessee received from the builder monthly rent as compensation for providing alternative accommodation as the building has gone for redevelopment . The Assessing Officer treated the said amount as income from other sources . The addition was affirmed by the CIT(A) . On appeal it was contended that the amount received by the builder is in the nature of hardship compensation and it is a capital receipt hence taxable . The Revenue argued that the aassessee has not utilised the rent received for his accommodation and he has lived with his parents . Tribunal deleted the addition on the ground that the receipt of compensation for hardship is in the nature of capital receipt hence not taxable . Followed Deliah Raj Mansukhani ( Smt) v. ITO ( ITA No. 3526/Mum/ 2017 dt. 29-1 -2021 ( ITA No. 2823/Mum/ 2022 dt. 3-4 -2023 )( AY. 2013 -14 )
Yes it is rightly decided by Honrable ITAT that rent paid by he builder duing the construcion period to the owne is not an income as no service is rendered nor it is a casual income. It is only for the alternatrive accommodation which the builder did not provide hence the compensation. If the buildedr provided alternative accommodatrion whether the assessing officer would haved viewed as an inocme