Snchalata Heramb Dhayagude Vs Jurisdictional AO Ward 16(3)(1) (ITAT Mumbai)
The appeal arose from the order of the Commissioner of Income Tax (Appeals) for AY 2018-19 sustaining an addition of ₹1,20,40,750 under Section 56(2)(x) of the Income Tax Act, 1961, representing the assessee’s 50% share of the stamp duty value of a Permanent Alternate Accommodation (PAA) allotted under a redevelopment agreement.
The assessee, a senior citizen and anesthesiologist, filed her return declaring total income of ₹16,10,510. She and her husband were co-tenants of premises at Savitri Niwas, Dadar, Mumbai. Pursuant to a redevelopment agreement dated 18.09.2017 with the developer, they became entitled to receive a residential flat on ownership basis as Permanent Alternate Accommodation in place of their existing tenanted premises. Pending completion of construction, they were entitled to temporary alternate accommodation and monthly rental compensation of ₹1,39,424. A corpus amount was also payable upon handing over possession of the PAA but was not received during the relevant year. The difference between rent received and rent paid for temporary accommodation amounting to ₹5,50,725 was offered to tax equally by the assessee and her husband. It was undisputed that possession of the PAA had not been handed over during the relevant previous year.
