CA Bharat Aggarwal (CA) (283 Points)
10 December 2009Agricultural Land held as a stock by a Partnership Firm engaged in sale / purchase of land and buildings, was compulsory acquired by the government.
what will be the treatment of initial compensation received from compulsory acquisition of agricultural Land ?
Gauav Aggarwal
(ACA)
(374 Points)
Replied 10 December 2009
If its stock in trade then the full value that will be received will be treated sale value. It will be consider as sale only when the ownership is transfered. its treatment will be same as we do for the debtors.
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 10 December 2009
Yup Bharath..The amount will be taken to PGBP and it wont attract capital gains if tats what your confused at..
CA Bharat Aggarwal
(CA)
(283 Points)
Replied 11 December 2009
actually i am confused regarding the enhanced compensation to be received after some years.
CAclubindia
