Mesne Profit is capital receipt hence not taxable: ITAT Mumbai

Advertisement Vile Parle Prarthana CHS Ltd Vs ACIT (ITAT Mumbai) ITAT Mumbai held that Mesne profit is treated as capital receipt not chargeable to tax. Accordingly, appeal of the assessee allowed and impugned order is quashed. Facts- The assessee is a cooperative housing society located in Vile Parle, Mumbai and has been deriving rental income from commercial premises on the ground floor and partly in the basement. Notably, total amount of Rs. 2.40 Crores was granted by the Small Causes court as Mesne Profits to the assessee’s society. AO after considering the assessee’s submissions he...