ACIT CENT .CIR6(4), MUMBAI vs. M/S. KENNETH BUILDERS & DEVELOPERS LTD, MUMBAI

ITA 2396/MUM/2021Status: DisposedITAT Mumbai30 December 2022AY 2017-1824 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the compensation received was a capital receipt, not a revenue receipt. This was based on the fact that the contract was frustrated due to the DDA's failure, leading to the loss of the source of income for the assessee.

What were the facts?

The assessee received compensation of Rs. 278 crores from the Delhi Development Authority (DDA) due to the frustration of a land development project. The DDA failed to fulfill its obligations, leading to the project's cancellation and subsequent court orders for refund with interest.

What were the issues?

Whether compensation received due to frustration of a land development contract is a capital or revenue receipt. Whether the compensation is taxable as income under the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 56,Section 45,Section 2(14),Section 2(47)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(19)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Before: SHRI ABY T VARKEY & SHRI AMARJIT SINGH

Hearing: 20.10.2022Pronounced: 30.12.2022

Per Amarjit Singh (AM): The present appeal filed by the revenue is directed against the order passed by the ld. CIT(A)-54, dated 27.09.2021 for A.Y. 2017-18. The revenue has raised the following grounds before us:

“1. On the facts and in the circumstances of the case, whether the learned Ld. CIT(A) was right in deleting the addition of Rs.278 crores, received by the assessee, on account of compensation given by the Hon'ble Delhi High Court, on breach of contract between the assessee and the Delhi Development Authority."

2.

On the facts and in the circums

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 56

All 1,790 judgments and leading authorities on Section 56 →

Recent GST High Court judgments

Search GST case law →