Compensation for cancelling allotment due to non-delivery in time is capital receipt

Atul Sharma 207 Vs ACIT (ITAT Delhi)

ITAT Delhi held that compensation received for cancelling the allotment due to delayed delivery of the unit is capital receipts and accordingly, the same is not income tax. Thus, appeal of the assessee allowed.

Facts- During assessment proceedings, AO noted that the assessee has not shown the interest income of Rs 59,47,942/- received from Jai Prakash Associates Ltd. The assessing officer has made the total additions of Rs.59,95,462/- as undisclosed interest Rs.59,47,942/-and undisclosed receipt of interest income from DL

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