https://www.taxtmi.com/highlights?id=88617 ITAT adjudicated a dispute concerning the tax treatment of hardship compensation received by a housing society member during property redevelopment. The tribunal determined that the compensation constituted a capital receipt, not taxable as income. The compensation effectively reduces the asset's acquisition cost and will be considered during future capital gains calculations. Relying on precedent in Kunnama V Balakrishnan, the tribunal ruled in favor of the assessee, allowing the appeal and establishing that such compensation does not trigger immediate tax liability, but impacts future capital gains computation. en-us Thu, 22 May 2025 08:21:45 +0530 Thu, 22 May 2025 08:21:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=88617 ITAT adjudicated a dispute concerning the tax treatment of hardship compensation received by a housing society member during property redevelopment. The tribunal determined that the compensation constituted a capital receipt, not taxable as income. The compensation effectively reduces the asset's acquisition cost and will be considered during future capital gains calculations. Relying on precedent in Kunnama V Balakrishnan, the tribunal ruled in favor of the assessee, allowing the appeal and establishing that such compensation does not trigger immediate tax liability, but impacts future capital gains computation. Highlights Income Tax Thu, 22 May 2025 08:21:45 +0530 https://www.taxtmi.com/highlights?id=88617