Flat Allotment as Nuisance Compensation Is Capital Receipt, Not Taxable

Mohammed Fakhre Alam Shaikh Vs Assessing Officer (ITAT Mumbai) In the case Mohammed Fakhre Alam Shaikh vs. Assessing Officer, the Income Tax Appellate Tribunal (ITAT), Mumbai, overturned the orders of the lower authorities and ruled in favour of the assessee for the assessment year 2016–17. The appeal challenged the additions made under Section 56(2)(vii)(b) of the Income Tax Act, 1961, and the denial of deduction under Section 54F, concerning a flat worth ₹2.59 crore received by the assessee from a builder as part of a court settlement. Also Read: Construction Inconvenience compensation ...