Dear professional friends,
A client of ours has had to temporarily vacat a flat in the building he has purchased recently due to certain legal tussle going on of the builder with the local municipal authorities. As an arrangement, the client will be receiving the the goodwill payment @ Rs. 25 per square foot per month on the saleable area for a periof of 1 year till the hearing & disposal of the builders case in the Court. My questiojn is whether the goodwill payment received by the client may be counted as receipts towards the temporary relinquishment (based on the definition available in the Websters dictionary) of the property till the hearing goes, & therefore chargeable to capital gains, after which the client may get the right to reside in the flat or income from other sources. Please reply quickly.
CAclubindia
