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TMI Blog2016 (8) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... f the said asset. Subject to these observations, the appeal of assessee is allowed. Compensation received by assessee for paying rent - Held that:- This amount was given by Developer for paying rent while development of the project was taking place. In fact, assessee submitted before me that he has made expenditure of ₹ 6,80,000/- towards rent while development activity of the project was taken place. So, Assessing officer is directed to allow the claim of assessee to same extent because it is nothing but compensation received by assessee for paying rent. This cannot be said to be income of assessee. Assessing Officer is directed accordingly. - ITA. No. 291/Mum/2015 - - - Dated:- 12-8-2016 - SHRI SHAILENDRA KUMAR YADAV, JUDICIAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or nondisclosure in his return of income. Accordingly, Assessing Officer treated the same as unexplained credits and added the same to the assessee s income under the head Income from other sources , which was confirmed by CIT(A). 3.1 Regarding addition of ₹ 22 lacs as income from other sources, ld. Authorized Representative drew my attention to page no.17. The stand of assessee has been that Assessing Officer made addition of ₹ 22 lacs received as corpus fund was received towards hardship caused to assessee on redevelopment and as such receipt was in the nature of capital receipt and as such not taxable. Ld. Authorized Representative drew my attention to the decision of ITAT Mumbai A Bench in ITA No.2349/Mum/2011 in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the compensation received by the assessee is in the revenue field, and rightly so because the residential flat owned by the assessee in society building is certainly a capital asset in the hands of the assessee and compensation is referable to the same. As held by Hon ble Hon ble Supreme Court Court, in the case of Dr. George Thomas K vs CIT(156 ITR 412), the burden is on the revenue to establish that the receipt is of revenue nature though once the receipt is found to be of revenue character, whether it comes under exemption or not, it is for the assessee to establish . The only defence put up by learned Departmental Representative is that cash compensation received by the assessee is nothing but his share in profits earned by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 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 computing capital gains in respect of the said asset. Subject to these observations, the appeal of assessee is allowed. 4. Next issue in this appeal is regarding addition of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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