LATA SATISH TAMBE,BANDRA EAST,MUMBAI vs. ITO, WARD 35(2)(1), MUMBAI, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER ITA No.9101/Mum/2025 (Assessment year: 2009-10)

Lata Satish Tambe vs ITO Ward 35(2)(1), Mumbai C-44/408, MIG Colony, Gandhi Kautilya Bhavan, C41-43, Avenue 3, Nagar, Bandra East, Mumbai- Near Videsh Bhavan, G Block BKC, 400051 Gilban Area, BKC, Bandra East, PAN:ACKPT6924G Mumbai-400051 APPELLANT RESPONDENT Assessee by : Shri Tanmay Phadke Revenue by : Shri Surendra Mohan (Sr. DR) Date of hearing : 23/04/2026 Date of pronouncement : 28/04/2026 O R D E R Per:Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2012-13, date of order 07.10.2025. The impugned order emanated from the order of the Ld. Income Tax Officer-35(2)(1), Mumbai (for brevity the ‘Ld. AO’) order passed under section 143(3) r.w.s. 147 of the Act date of order 26.12.2016.

2 ITA No.9101/Mum/2025 Lata Satish Tambe 2. The brief facts of the case are that the assessee is an individual capacity filed the return by declaring total income Rs.5,08,882/-. Subsequently, the information received by the Ld. AO from the department that the assessee has received amount to Rs.46,98,063/- in alleged assessment year. After due verification it is found that the assessee had received the “Hardship Compensation” from the builder, “M/s Suyog Happy Home” due to delay in possession of flat. Accordingly, the notice u/sec. 148 was issued and the Ld. AO treated this “Hardship Compensation” as a revenue receipt and added with the total income. The aggrieved assessee filed an appeal before the Ld. CIT(A). the assessee has taken plea that the said “Hardship Compensation” is nature of capital receipt. So, no tax is applicable for this transaction. But the Ld. CIT(A) rejected the assessee’s plea and dismissed the appeal of the assessee. Being aggrieved assessee filed an appeal before us. 3. The Ld. AR argued and filed a paper book comprising of pages 1 to 110 which is placed in record. It is observed that during the course of assessment proceedings, the assessee received an amount of Rs. 46,98,063/- on 09/06/2008 as “Hardship Compensation”. The assessee has treated this amount as capital receipt and had not declared as income. He contended that by considering the order of Hon'ble Bombay High Court and the order of Coordinate Bench of ITAT Mumbai, the “Hardship Compensation” is considered as income in nature of capital receipt which is not taxable income. The Ld. AR respectfully relied on the order of the Hon’ble Bombay high court in the case of Sarfaraz S. Furniturewalla vs Afshan Sharfali Ashik Kumar & Ors. Writ Petition No. 4958 of 2024 date of order 15/04/2024 held that the “Hardship Compensation” is considered as capital receipt. Further the Ld. AR respectfully relied on the order of the Coordinate

3 ITA No.9101/Mum/2025 Lata Satish Tambe Bench of ITAT, Mumbai in the case of Nalini Sanjeev Nadkarni vs ITO in ITA No.1981 and 1982/Mum/2024 the date of pronouncement 24.07.2024. The relevant paragraph no.9 of the said order is reproduced as below: “9. We have considered the facts, circumstances and the ratio of the judicial decisions. The Hon'ble Tribunal has passed the order, where the hardship compensation received by the asssesse is considered as capital receipt and is not taxable. Accordingly, we follow the judicial precedence, and set aside the order of the CIT(A) and direct the Assessing officer to delete the addition. And we allow the grounds of appeal in favour of the asssesse.”

4 ITA No.9101/Mum/2025 Lata Satish Tambe Accordingly, the impugned appellate order passed by the Ld. CIT(A) is set aside. So, the addition made by the Ld. AO amount to Rs.46,98,063/- is deleted. 3. In the result, the appeal of the assessee bearing ITA No.9101/Mum/2025 is allowed. Order pronounced in the open court on 28th day of April 2026. Sd/- Sd/- (OM PRAKASH KANT) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: 28/04/2026 SAUMYASr.PS Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकरआयु� CIT 4. िवभागीय�ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड�फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI