Compensation received by assessee from builder for non-delivery of property within stipulated time is a...

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. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X