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18. TS-572-ITAT-2026(Delhi)
Prem Narayan Chourasia v. ACIT
A.Y.: 2020-21 Date of Order: 6.4.2026
Sections: 45, 56
Compensation received from RERA is taxable as Capital Gains and not Income from Other Sources.
FACTS:
The assessee in financial year 2005-06 booked a plot being Plot No 412, Sector -15, Sunnywood Enclave Wave City, Ghaziabad and up to FY 2015-16 paid amounts aggregating to Rs.13,13,318. During the year under consideration he received from the builder a sum of Rs 32,47,185 which included compensation of Rs 19,33,867 received under provisions of RERA. The amount received was offered for taxation under the head capital gains.
The Assessing Officer (AO) while assessing the total income under section 147 of the Act charged the amount of compensation to tax as Income from Other Sources.
Aggrieved, assessee preferred an appeal to CIT(A) who confirmed the action of the AO.
Aggrieved, the assessee preferred an appeal to the Tribunal.
HELD
