Taxability of Rent for Alternative Accommodation and Hardship Allowance

Narayan Devarajan Iyengar Vs ITO (ITAT Mumbai) The case focused on the reopening of the assessee, Narayan Devarajan Iyengar’s case under section 147 of the Act. The main issue was the amount received by Iyengar during the redevelopment of a society, which included rent and a hardship allowance. The Assessing Officer (AO) treated the corpus fund as taxable and the rent as partially taxable. However, Iyengar disagreed, stating the corpus fund was a capital receipt and thus, non-taxable. After examining precedents like Lawrence Rebello vs ITO and others, the Tribunal decided that the hardsh...