treatment of compensation in respect of compulsory acquition

This query is : Resolved

ankush (Querist)
Follow

24 September 2010 i want to know the treatment of the following:
a agricultural land in urban area of charitable trust is acquired in 1995 and recd in that year but in 2009-10 enhanced compensation was received with interest.

what is tax treatment?

venkatraman shrinivas

venkatraman shrinivas (Expert)
Follow

25 September 2010 The enhanced compensation will be brought to tax as deemed to have been earned during the previous year in which the additional or enhanced compensation was received. Kindly refer tao section 45(5)(a) to(c). This is a non obstente clause which provides for assessment irrespective of the limitation under section 153 for the purpose of making assessment of incomes. Similarly, if there is reduction as a result of further appeal by the government, the assessing officer shall revise the assessment suo-motu by invoking the provisions of section 155(17).Either way it cannot escape the tax net.