The assessee was awarded a sum of Rs. 2 crores as compensation for wrongful possession by its erstwhile tenant. The AO\u00a0 held that the comparable market rent the amount received by the assessee in the form of compensation was to be treated as arrears of rent under section\u00a025B\u00a0and under section\u00a025AA\u00a0of the\u00a0Income-tax Act, 1961\u00a0inserted by the Finance Acts 2000 and 2001 with effect from April 1, 2000 and April 1, 2001 respectively. Accordingly, he brought to tax the compensation received in the sum of Rs. 2 crores as arrears of rent chargeable under the head \u201cIncome from house property\u201d and granted 30 per cent. standard deduction thereon under section\u00a024\u00a0and assessed the remaining Rs. 1.40 crores as taxable income from house property. The Commissioner (Appeals) held that mesne profits were taxable as a revenue receipt. \u00a0On appeal the Tribunal held that\u00a0 \u00a0the compensation (i. e. mesne profits) of Rs. 2 crores was a capital receipt. Followed ACIT v. Goodwill Theaters Pvt .Ltd. (IT ANo. 8185\/Mum\/2011 dt. June 19, 2013)\u00a0followed.( AY.2014-15)<\/p>\n
\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S. 4 : Charge of income-tax -Capital or revenue -Mesne profits \u2014 Income from house property – Compensation for wrongful possession by its erstwhile tenant -Capital receipt [ S. 22, 25AA, 25B ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14376","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3JS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14376"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14376\/revisions"}],"predecessor-version":[{"id":14377,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14376\/revisions\/14377"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}