Mesne Profits from Overstaying Tenant Taxable as Rental Income: ITAT Delhi

Archna Chadha Vs ACIT (ITAT Delhi) Mesne Profits from Overstaying Tenant Are Revenue Income: ITAT Delhi Holds Compensation Taxable as Rental Receipt The Delhi ITAT dismissed the assessee’s appeal and held that mesne profits of ₹1.62 crore received from State Bank of India for unauthorised occupation of leased premises were taxable as revenue receipts and not capital receipts. The Tribunal noted that the property had originally been let out on rent and the dispute arose only due to overstaying by the tenant after termination of tenancy. The civil court quantified mesne profits on the basis ...