Construction Inconvenience compensation is Capital Receipt: ITAT Mumbai

Shri Kishre D. P Vs ITO (ITAT Mumbai) In a case offering clarity on the tax treatment of compensation received by property owners for inconvenience caused by building work, the Income Tax Appellate Tribunal (ITAT), Mumbai bench, has ruled that such receipts are capital in nature and not taxable income. Also Read: Flat Allotment as Nuisance Compensation Is Capital Receipt, Not Taxable The ruling came in the appeal filed by assessee Kishre D. P. against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2008-09. The central issue in the appeal was the taxability of an...