TaxTMI 
TaxTMI 
2023 (5) TMI 1362
X X X X Extracts X X X X
X X X X Extracts X X X X
....in law, the Hon. Dispute Resolution Panel-2, Mumbai erred in confirming addition of rent for alternative accommodation of Rs. 8,93,672/- to the total income of the appellant. 3. On facts, in circumstances of the case and in law, the Hon. Dispute Resolution Panel-2, Mumbai erred in confirming addition of corpus/monetary consideration of Rs. 64,00,000/- to the total income of the appellant. 4. Without prejudice to above Ground Nos. 1, 2 & 3 above, on facts, in circumstances of the case and in law, the Hon. Dispute Resolution Panel ought to directed learned A.O. to tax rent for alternative accommodation and corpus/monetary consideration amount under the head long term capital gain of the year in which transfer of capital asset is complete. 5. Without prejudice to above Grounds Nos. 1, 2, 3 & 4 above, on facts, in circumstances of the case and in law, the Hon. Dispute Resolution Panel-2 ought to have directed learned A.O. to tax only share of the appellant in rent for alternative accommodation and corpus/monetary consideration and not the entire amount. 6. The appellant craves leave to add, alter, modify or delete any of the above Grounds of Appeal."....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... an addition of the sum of Rs.64 lakhs received by the assessee from the Developer/Builder as 'Income from Other Sources'. As regards the rent of Rs.10,85,679 received by the assessee, the AO accepted the contention of the assessee that the assessee‟s share is limited to only Rs.1,31,800, which has already been disclosed under the head 'Income from Other Sources' in the return filed by the assessee. 6. The assessee filed detailed objections against the addition made by the AO vide draft assessment order before the learned DRP. Vide its directions dated 26/10/2022 issued under section 144C(5) of the Act, the learned DRP, inter-alia, rejected the objections filed by the assessee as regards the addition of Rs.64 lakhs. Further, pursuant to the issuance of notice of enhancement, the learned DRP rejected the contention of the assessee that assessee's share is only limited to Rs.1,31,800 already disclosed in the return of income and directed the AO to enhance the total income of the assessee by the balance amount of rent received of Rs.8,92,672. In conformity with the directions issued by the learned DRP, the AO vide impugned final assessment order dated 15/11/2022 passed under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for hardship arising out of redevelopment, particularly huge outgoings post- redevelopment. Thus, as per the assessee, this compensation is purely to compensate the personal loss and other inconveniences likely to be caused and therefore, can only be a capital receipt and can never be treated as a revenue receipt. 8. We find that while dealing with a similar issue of taxability of hardship compensation, the coordinate bench of the Tribunal in Lawrence Rebello vs ITO, in ITA No.132/Ind./2020, vide order dated 29/09/2021, after considering various decisions passed by the coordinate bench of the Tribunal on a similar issue, observed as under:- "11. On careful consideration of above rival submissions, we are of the considered view that in the reasons recorded the AO himself noted that the benefits received by the assessee from a bigger size of flat and impugned amount has been given in pursuance to agreement between the society and the developer and it was hardship compensation, ITA No.132/Ind/2020 rehabilitation compensation kind of benefit. The orders passed by the ITAT Mumbai Bench in case of Smt. Delilah Raj Mansukhani (supra), Jitendra Kumar Soneja (supra) and Kushal ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....commodation to be computed on the basis of Rs.171 per sq. ft. per month of the existing carpet area of the members existing flat for the period of 34 months and on the basis of Rs.205 sq. ft. per month of the existing carpet area of the members existing flat for the remaining period of 10 months. Thus, the assessee was entitled to an amount of Rs.52,73,298 for the first 34 months and Rs.18,59,350 for the next 10 months. Accordingly, in the year under consideration, the assessee received alternative accommodation rent of Rs.10,85,679 for the 1st block of 7 months. As per the assessee, he distributed this amount amongst the brothers and sisters as per the Will of his father. Since the property is ancestral in nature, the rent received was divided amongst the family (6 sons and 4 daughters) as per the aforesaid Will. Accordingly, in its return of income, the assessee disclosed an amount of Rs.1,31,800 being his share as 'Income from Other Sources'. The AO vide draft assessment order accepted the submission of the assessee, however, the learned DRP directed the AO to enhance the total income of the assessee by an amount of Rs.8,93,672 on the basis that the assessee is a nominee and the....