S. 4 : Charge of income-tax-Income-Capital or revenue-Member of Society-Hardship compensation amount received from builder is capital receipt-Not taxable as income from other sources. [S. 2(24), 56]
The assessee is a tuition teacher by profession. The assessee received hardship compensation from the developer. The assessee has shown the said receipt as capital receipts. The Assessing Officer assessed the receipts as income from other sources. On appeal the CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held the assessee has received the amount from builder and the same will not come under the purview of the income within the meaning of section 2(24) of the Act. The hardship compensation is a capital receipt hence not taxable. The Tribunal has relied on various judgements of the Tribunal and deleted the addition. (AY. 2012-13, 2015-16, 2016-17) (ITA Nos. 1081/ 1082/1083 /2024 (Mum) “D” dt. 23-9-2024 )
Monica Parmanand Mirchandani v. ITO (Mum.)(Trib.) (UR) www.itatonline.org
(Coram : Hon’ble Ms. Kavitha Rajagopal, JM and Hon’ble Shri Girish Agrawal, AM)