2021 (3) TMI 252

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....ated and therefore, assessee moved Miscellaneous Application which was allowed by the Bench in MA No.460/Mum/2019 arising out of ITA.3526/Mum/2017 dated 22/01/2020 whereby the said order of the Co-ordinate Bench has been recalled to the limited extent of deciding the ground No.5 & 6 regarding enhancement of assessment on account of rental income for alternate accommodation of Rs. 2,60,000/- by ld CIT(A). The grounds are reproduced as under:- "5.On the facts and circumstances of the case and in law, the order of the ld. CIT(A) enhancing the assessment on account of rental income for alternate accommodation of Rs. 2,60,000/- is bad in law. 6. On the facts and circumstances of the case and in law, the Id. CIT(A) erred in enha....

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....s meeting / overcoming the hardship and it is a capital receipt and therefore, is not liable to be taxed. The assessee relied on the decision of the Co-ordinate Bench in the case of Kushal K. Bangia vs. ITO in ITA No.2349/Mum/2011 for A.Y.2007-08 wherein the AO did not tax the displacement compensation as it was held to be a receipt not in the nature of income, however, the ld. CIT(A) has rejected the contentions of the assessee and enhanced the assessment to the extent of Rs. 2,60,000/- by holding that assessee has not paid any rent. 5. After hearing the rival submissions and perusing the material on record, we find that compensation received by the assessee towards displacement in terms of Development Agreement is not a revenue receipt....

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....al TDR/FSI is available to the land owner or society which owns the (and depending upon .the terms of the de-development agreement without transferring the land . In the present case the assessee who was flat owner in the building was member of the society, As per the agreement each member of the society including the assessee was to be given a flat in lieu of the old one and the each member including the assessee was given compensation. We also note that In the decisions in 1TA No 72/Mum/2012 assessment year 2008-09 Bench E and ITA No 5271/Mum/2012 assessment year 2008-09 Bench "D" the Tribunal held that the amounts received as compensation for hardship , rehabilitation and for shifting are not liable to tax We, therefore , respectfully , ....