S. 4 : Charge of income-tax – Hardship allowance received from the Developer – Capital receipt-Not chargeable to tax. [S. 2(24)(vi)]

The Hon’ble Income-tax Appellate Tribunal – Indore Bench in the case of Shri Lawrence Rebello v. ITO ITA No.132/Ind/2020 dated September 29, 2021 inter alia, relying on the decisions of the Hon’ble ITAT- Mumbai Bench in the case of Smt. Delilah Raj Mansukhani Vs. ITO, ITA No.3526/Mum/2017, order dated 29.01.2021, Kaushal K. Bangia v. ITO ITA No.2349/Mum/2011 dated January 31, 2012 and Shri Devshi Lakhamshi Dedhia vs. ACIT in ITA No.5350/Mum/2012 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.

(ITA No.132/Ind/2020 dated September 29, 2021, A.Y. 2011-12)

Coram Hon’ble Shri C.M. Garg, JM & Hon’ble Shri Manish Borad, AM