Hardship compensation is capital receipt: ITAT Mumbai

Monica Parmanand Mirchandani Vs ITO (ITAT Mumbai) ITAT Mumbai held that hardship compensation is not a revenue receipt but constitute a capital receipt. Accordingly, AO directed to delete addition made towards the same. Facts- The assessee is an individual and is a tuition teacher by profession. AO had passed the assessment order u/s. 143(3) r.w.s. 147 of the Act on 30.11.2019, determining total income at Rs.74,12,272/-, after making an addition of Rs.71,34,472/- on the amount received from DB MIG Realtors & Builders Pvt. Ltd. as ‘revenue receipt’. First appellate authority upheld the ...