Compensation received for hardship is capital receipt hence not taxable

Pushpa R. Chawla Vs ITO (ITAT Mumbai) ITAT Mumbai held that payments/compensation paid by developer is in the nature of hardship allowance / rehabilitation allowance is capital receipt and is not liable to tax. Facts- The assessee is an individual and she has filed her return of income declaring total income at ₹.9,47,976/-. AO received information from the Income Tax Officer, Mumbai that the assessee is a member of Middle Income Group III Co-operative Housing Society Ltd. The said society had entered into an agreement with M/s. Suyog Happy Homes for redevelopment of the society and as per ...