Rehabilitation Allowance received On Account Of Re-Development Of Society Can't Be Treated As Income: Mumbai ITAT

The Income Tax Appellate Tribunal (ITAT) in Mumbai ruled that the rehabilitation allowance received by a member on account of society redevelopment cannot be treated as taxable income. The tribunal concluded that this allowance is a capital receipt, not income, as it compensates for the displacement caused by redevelopment. The ruling clarifies the tax treatment of compensation received in redevelopment projects, providing relief to taxpayers by excluding such allowances from taxable income.