Homebuyer compensated by builder for delayed property handover.

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Full Text of the Document

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....Compensation received by assessee from builder for non-delivery of property within stipulated time is a capital receipt not chargeable to income tax. Assessee had applied for cancellation of allotment which was accepted by builder, who calculated compensation considering 12% interest per annum. Assessee had taken housing loan for investment in property and repaid interest to bank. Compensation received for cancellation of allotment due to non-handover within time is not taxable in assessee's hands.....