MUMBAI: The Income-Tax Appellate Tribunal’s (ITAT) Mumbai bench not too long ago held that the apartment repayment gained from a builder Due to a redevelopment mission isn’t taxable within the palms of the previous flat proprietor. ITAT followed this stand even because the taxpayer, the previous flat proprietor, had now not taken some other lodging on apartment however had moved in along with his folks.
Typically, when a construction is going in for redevelopment, the flat house owners are both supplied with exchange lodging by means of the builder or paid a per month apartment repayment. The ITAT held the apartment repayment is a ‘capital receipt’ and now not a ‘income circulate of revenue’, thus it’s not taxable within the palms of the previous flat proprietor. This order adopted a identical order handed by means of the Mumbai bench previous.
This case of Ajay Parasmal Kothari used to be taken up for scrutiny below the computer-aided scrutiny variety mechanism for the monetary 12 months 2012-13. During the process the scrutiny, the income-tax officer seen that Kothari had gained Rs 3.7 lakh from the builder.
Kothari had a flat in a cooperative housing society in Malad and the construction had long gone in for redevelopment. This sum of Rs 3.7 lakh comprised the per month apartment repayment gained for exchange lodging. The IT officer additional seen that the taxpayer had now not applied this quantity for another lodging. Thus, he proceeded to regard it as taxable revenue, below the pinnacle ‘revenue from different resources’. In different phrases, this implies the volume could be taxable on the acceptable slab fee. The commissioner (appeals) upheld this plan of action, which resulted in Kothari submitting an attraction with ITAT.
The tax tribunal famous whilst the taxpayer had adjusted and lived along with his folks, he nonetheless confronted hardship by means of having to vacate his flat for redevelopment. Relying on an previous choice taken by means of the tax tribunal, on this case additionally the ITAT held the repayment for hire used to be now not taxable. Incidentally, the ITAT additionally condoned a prolong of one,566 days in submitting an attraction with the ITAT at the grounds that the taxpayer used to be now not rightly guided by means of his previous tax suggest.
Typically, when a construction is going in for redevelopment, the flat house owners are both supplied with exchange lodging by means of the builder or paid a per month apartment repayment. The ITAT held the apartment repayment is a ‘capital receipt’ and now not a ‘income circulate of revenue’, thus it’s not taxable within the palms of the previous flat proprietor. This order adopted a identical order handed by means of the Mumbai bench previous.
This case of Ajay Parasmal Kothari used to be taken up for scrutiny below the computer-aided scrutiny variety mechanism for the monetary 12 months 2012-13. During the process the scrutiny, the income-tax officer seen that Kothari had gained Rs 3.7 lakh from the builder.
Kothari had a flat in a cooperative housing society in Malad and the construction had long gone in for redevelopment. This sum of Rs 3.7 lakh comprised the per month apartment repayment gained for exchange lodging. The IT officer additional seen that the taxpayer had now not applied this quantity for another lodging. Thus, he proceeded to regard it as taxable revenue, below the pinnacle ‘revenue from different resources’. In different phrases, this implies the volume could be taxable on the acceptable slab fee. The commissioner (appeals) upheld this plan of action, which resulted in Kothari submitting an attraction with ITAT.
The tax tribunal famous whilst the taxpayer had adjusted and lived along with his folks, he nonetheless confronted hardship by means of having to vacate his flat for redevelopment. Relying on an previous choice taken by means of the tax tribunal, on this case additionally the ITAT held the repayment for hire used to be now not taxable. Incidentally, the ITAT additionally condoned a prolong of one,566 days in submitting an attraction with the ITAT at the grounds that the taxpayer used to be now not rightly guided by means of his previous tax suggest.