Hardship allowance paid by developer not liable to be taxed as revenue: ITAT Mumbai

Sonal Samit Vartak Vs ITO (ITAT Mumbai)

In the case of Sonal Samit Vartak vs. ITO (ITAT Mumbai), the Income Tax Appellate Tribunal (ITAT) ruled that the hardship allowance received by the assessee from a developer for vacating a flat during redevelopment is not taxable as revenue. The appeal was filed against the appellate order of the National Faceless Appeal Centre, which upheld the reassessment order under Section 143(3) read with Section 147 of the Income Tax Act. The assessee contended that the Rs. 25,21,508 received was a capital receipt, not income, and cited judicial preced

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