Hardship Allowance Received by Assessee from Developer as ‘compensation Towards Displacement’ is not a ‘revenue receipt’: ITAT

The ITAT ruled that a hardship allowance received by an assessee from a developer as compensation for displacement is not a revenue receipt but rather a capital receipt. This ruling differentiates between payments received for personal hardships and regular income, with the former being non-taxable. The decision is significant for taxpayers facing displacement due to development projects, offering clarity on the tax treatment of compensation amounts.