Hardship Allowance Received by Assessee from Developer as ‘compensation Towards Displacement’ is not a ‘revenue receipt’: ITAT [Read Order]

The Tribunal viewed that the hardship compensation is nothing but a ‘capital receipt’ which is towards the hardship caused to the assessee as the name suggests, due to the displacement which is inevitable during redevelopment of the property where the developer compensates the assessee
ITAT - Income Tax - Developers compensation case - capital receipt - TAXSCAN

The Mumbai bench of the Income Tax Appellate Tribunal ( ITAT ) has held that Hardship Allowance received by assessee from Developer as ‘compensation towards displacement’ is not a ‘revenue receipt’ . The bench held that the hardship compensation is a ‘capital receipt. The assessee, Monica Parmanand Mirchandani is an individual and is a tuition…

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