Taxability of hardship compensation received by an assessee from...

Taxability of hardship compensation received by an assessee from a builder for vacating an existing flat for redevelopment purposes. The assessee claimed that such receipt is a capital receipt and not taxable income. The ITAT, relying on the Bombay High Court's decision in Sarfaraz S. Furniturewalla's case, held that any hardship or rehabilitation allowance paid by a developer for the hardship suffered due to dispossession cannot be considered a revenue receipt and is not liable to be taxed. Accordingly, the hardship allowance received by the assessee from the developer is not taxable income, and the assessee's ground was allowed.