TaxTMI 
TaxTMI 
2023 (2) TMI 923
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....l, the assessee has raised the following ground:- "The learned Commissioner of Income Tax (A) has erred in view of the facts, circumstances and law, in confirming the action of Assessing Officer in making addition of Rs. 25,21,508/- on account of Hardship Compensation received by treating it revenue receipt instead of capital receipt." 3. The brief facts of the case as emanating from record are: The assessee is an individual. For the year under consideration, the assessee filed his return of income on 31/03/2013, declaring a total income at Rs.1,21,270. Pursuant to the information received from ITO-23(2)(3), Mumbai that the assessee is in receipt of an amount of Rs.84,05,026, as hardship allowance along with a new flat in a newly develop....
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....to income tax in the hands of the assessee under the head "income from other sources‟. Accordingly, the Assessing Officer made an addition of Rs.25,21,508, as income from other sources. 4. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee both in respect of invocation of jurisdiction under section 147 of the Act as well as on merits of addition made by the Assessing Officer. Being aggrieved, the assessee is in appeal before us. 5. We have considered the rival submissions and perused the material available on record. The assessee is a member of the MIG Co-operative Housing Society Ltd. The society, who was the owner of the property, entered into an agreement for the development of the property, and to ....
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....bai reassessment proceedings were initiated in the case of the assessee and vide assessment order passed under section 143 (3) r/w section 147 of the Act the aforesaid receipt of Rs.25,21,508, was treated as taxable in the hands of the assessee as "income from other sources‟. As per the assessee, the said payment is a hardship allowance to cover the cost of prospective loss of place of residence and the consequential hardship thereof, including loss of furniture, fixtures, and other inbuilt conveniences like fresh gas connections and various other facilities including relocation of residence. Thus, as per the assessee, this compensation is purely to compensate the personal loss and other inconveniences likely to be caused and therefor....
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.... in the case of Jitendra Kumar Soneja (supra), which reads as under:- "3.2 Nothing contrary was brought to my knowledge on behalf of Revenue. Facts being similar, so following same reasoning, I find that consideration for which the amount has been paid by the developer are, therefore, not relevant in determining the nature of receipt in the hands of the assessee. In view of these discussion, in my considered view, assessee could not be said to be of revenue nature, and, accordingly, the same is outside the ambit of income under section 2(24) of the Act. The impugned receipt ends up reducing the cost of acquisition of the asset, i.e. flat, and, therefore, the same will be taken into account as such, as and when occasion arises for computin....