Compulsory acquisition

SOUMYADIP (CA) (64 Points)

13 October 2011  

There was compulsory acquisition of land by municipal authorities & in respect of that compensation TDR was received .The question now arises is that whether capital gains tax is attracted u/s 45(5)  & if attracted what is the method of valuing TDR?Further i want to bring to the notice of CA club members that on transfer of such TDR no capital gain is attracted as cost of acquisituion is nil(as determined in various cases)

Please give reference to case laws if there is any in respect of taxability of receipt of TDR in case of compulsory acquisition?