Agricultural 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 ?
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.
Yup Bharath..The amount will be taken to PGBP and it wont attract capital gains if tats what your confused at..
actually i am confused regarding the enhanced compensation to be received after some years.
Bharat Shah & Associates
Mumbai
CA Inter
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PARV & Co.
New Delhi
CA Inter
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CCI
Pro
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