2014 (6) TMI 43

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... have verified that who is the tenant over the property but no such steps were taken by the AO – Relying upon DDA Vs ITO [1995 (1) TMI 126 - ITAT DELHI] - though the nomenclature is interest but it is not the interest as such, it is a compensation on account of delay in the construction of the developed units and the term 'interest' used only as a measuring of quantification - The Tribunal took no .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... perty in question had to be handed over sometime in 2006; concededly, the possession was given in 2010. In terms of the agreement between the assessee and the seller, the former was entitled to compensation @ Rs. 50/- per sq. ft. of the total flat area for each month of the delay incurred in handing over the possession. It was in these circumstances that the amount was received by the assessee. Be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rongly shown the income from this property as a rental income. It was in fact a compensation for delay in completion of the construction. Thus, the order of the Assessing Officer suggests that he proceeds on the assumption that possession was received by the assessee and it is an income from the property. This reasoning is not logical for the two reasons. If the possession was handed over to the a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... h steps were taken by the Assessing Officer. The learned counsel for the assessee put heavy reliance upon the order of the ITAT passed in the case of DDA Vs ITO reported in 53 ITD 90. The facts of this case are almost similar to the facts of the assessee. The DDA has floated a scheme for construction of flats which was to be financed by the prospective allottee. The DDA could not complete the cons .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Similar is the situation in the present case. Taking into consideration all the facts and circumstances, we allow the ground of appeal raised by the assessee and direct the Assessing Officer to treat this compensation received from DLF Commercial as a capital receipt. This Court has considered the submissions. As is evident, the Tribunal took note of its previous decisions. Considering the tot .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X