Correct head of income - compensation received for vacating the ...

Compensation for Vacating Flat Deemed Capital Receipt, Not Capital Gain or Income, Rules ITAT in Favor of Assessee.

March 13, 2024

Case Laws Income Tax AT

Correct head of income - compensation received for vacating the flat - While the assessee argued for capital gain treatment, the Revenue contended it should be classified as income from other sources. However, the ITAT ruled that the compensation constituted a capital receipt in the hands of the assessee, as it was received from the company out of its own income. The ITAT concluded that the amount was neither capital gain nor income from other sources but rather an application of income by the company. Therefore, the addition made by the assessing officer was deleted, and the appeal of the assessee was allowed.

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Correct head of income - compensation received for vacating the ...

Compensation for Vacating Flat Deemed Capital Receipt, Not Capital Gain or Income, Rules ITAT in Favor of Assessee.

March 13, 2024

Case Laws Income Tax AT

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