UPINDER KAUR KHALSA RAO,MUMBAI vs. INCOME TAX OFFICER 35(3)(1), MUMBAI

ITA 3670/MUM/2023Status: DisposedITAT Mumbai04 March 2024AY 2011-12Bench: SHRI VIKAS AWASTHY (Judicial Member), MS PADMAVATHY S (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amount received as hardship compensation from the developer during redevelopment is a capital receipt and not taxable as income. The Tribunal followed previous decisions of the ITAT Mumbai Bench on similar facts.

What were the facts?

The assessee received Rs. 53,50,500/- from a developer for vacating her flat for redevelopment. The Assessing Officer (AO) treated this as income from other sources, while the CIT(A) confirmed the addition for the assessee's 1/3rd share, amounting to Rs. 17,83,500/-.

What were the issues?

Whether the hardship compensation received by a flat owner from a developer for vacating the premises for redevelopment is a capital receipt or taxable income.

Which sections of the Income-tax Act were involved?

Section 2(24),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI VIKAS AWASTHY, JM &

For Appellant: Shri Haridas Bhat, CA, Ms. Rajeshari Menon, Sr. DR
Pronounced: 04.03.2024

Per Padmavathy S, AM: This appeal is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC) [for short 'the CIT(A)] dated 14.08.2023 for the AY 2011-12. The assessee has raised the following grounds of appeal: “a) On the facts and circumstances of the case, and in Law, the CITA, NFAC erred In confirming addition made by the Income Tax Officer 35(3)(1), Mumbai (The AO.) amounting to of Rs. 17,83,500/- towards proportionate 1/3 share of Rs. 50,00,000/-received on account of hardship compensation. b) On the facts and circumstances of the case and in law CITA erred in confirming that: i. AD made addition after

The order continues below.

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