2026 (4) TMI 1120

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....ssessment Unit Income Tax Department (for brevity the 'Ld. AO') order passed under section 147r.w.s. 144(B) of the Act date of order 26.03.2023. 2. The brief facts of the case are that the assessee is an individual and filed his return by declaring income from house property, income from profession and income from other sources. The assessee filed the return by declaring total income Rs. 25,07,010/-. The Ld. AO issued the notice u/sec. 148 of the Act for reopening of assessment. The assessee thereafter had filed a return of income in response to the notice u/sec. 148. During the assessment proceeding the Ld. AO found that the assessee is a member of the MIG CHS Group I Society (in short 'Society'). The society had signed a redevelopment ....

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.... the rate Rs. 170/- per sq. ft. on 615 sq. ft. for 12 months Offered for Taxation in AY2017-18 (iv) From 01/04/2018 to 07/12/2018 8,61,573.00 Hardship Compensation received at the rate Rs. 170/- per sq. ft. on 615 sq. ft. for 8 months and 7 days Offered for Taxation in AY2019-20 Total 45,20,823.00             Corpus Fund 61,30,375.00   Offered for Taxation in AY2016-17 3. It is observed that during the course of assessment proceedings, the assessee received an amount of Rs. 11,50,050/- for A.Y. 2016-17 and a corpus fund of Rs. 61,30,375/-, both of which were duly offered to tax. With regard to the balance amount of "Hardship Compensation" of Rs. 33,70,7....

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.... income. The Ld. AR respectfully relied on the order of the Coordinate Bench of ITAT, Mumbai in the case of Nalini Sanjeev Nadkarni vs ITO in ITA No.1981 and 1982/Mum/2024 the date of pronouncement 24.07.2024. The relevant paragraph no.9 of the said order is reproduced as below: "9. We have considered the facts, circumstances and the ratio of the judicial decisions. The Hon'ble Tribunal has passed the order, where the hardship compensation received by the assessee is considered as capital receipt and is not taxable. Accordingly, we follow the judicial precedence, and set aside the order of the CIT(A) and direct the Assessing officer to delete the addition. And we allow the grounds of appeal in favour of the assessee." 6. The....