https://www.taxtmi.com/caselaws?id=449300 ITAT Mumbai held that hardship compensation received by housing society member under re-development agreement constitutes capital receipt, not taxable revenue. AO/CIT(A) erroneously treated compensation from builder as dividend income, arguing it violated mutuality principle since payment came from third party developer. Tribunal followed coordinate bench precedent in Kushal K. Bangia, ruling compensation reduces flat's acquisition cost and becomes relevant only for future capital gains computation. Assessee's appeal allowed, establishing hardship compensation as non-taxable capital receipt. en-us Tue, 12 Dec 2023 00:00:00 +0530 Fri, 09 Feb 2024 06:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449300 ITAT Mumbai held that hardship compensation received by housing society member under re-development agreement constitutes capital receipt, not taxable revenue. AO/CIT(A) erroneously treated compensation from builder as dividend income, arguing it violated mutuality principle since payment came from third party developer. Tribunal followed coordinate bench precedent in Kushal K. Bangia, ruling compensation reduces flat's acquisition cost and becomes relevant only for future capital gains computation. Assessee's appeal allowed, establishing hardship compensation as non-taxable capital receipt. Case-Laws Income Tax Tue, 12 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449300