Redevelopment Compensation is Capital Receipt, Not Taxable as Income: ITAT Mumbai

Subhash Suryakant Phadkar Vs ITO (ITAT Mumbai) ITAT Mumbai Holds Redevelopment Compensation / Hardship Allowance as Capital Receipt, Not Taxable as Income The Mumbai ITAT allowed the assessee’s appeal and held that compensation of ₹53.50 lakh received from a developer in connection with redevelopment of a residential flat constitutes a capital receipt, not chargeable to tax as “income from other sources.” The amount comprised ₹25 lakh paid as compensation for the developer’s failure to adhere to agreed redevelopment terms and ₹28.50 lakh towards members’ beneficial rights, cor...