Additional compensati​on received for property redevelopm​ent from developer a capital receipt, not taxable

Additional cash compensation received by member of a housing society from developer at the time of redevelopment of society property, is capital receipt; Compensation not income u/s 2(24), however compensation would reduce acquisition cost while computing capital gains on sale of redeveloped flat in future: Mumbai ITAT

The ruling was delivered by a Mumbai ITAT bench of Shri Pramod Kumar and Shri B. R. Mittal.
Kushal K Bangia V. ITO [TS-51-ITAT-2012(Mum)]