ITAT Mumbai: Redevelopment Hardship Compensation is Capital Receipt-Addition Deleted for Double Taxation

Ashok Ramchandra Naik Vs ITO (ITAT Mumbai) The Mumbai ITAT held that hardship compensation received by a society member under a redevelopment agreement is a capital receipt and not taxable. The assessee had received compensation and corpus fund from the developer and had already offered part of the income to tax over multiple years on a proportionate basis. The Assessing Officer, however, taxed a portion of such compensation again in the year of receipt, resulting in double taxation of the same income. The Tribunal noted that the issue of taxability of such compensation is already settled in f...