A trust registered u/s 12A of the Income Tax Act, 1961 purchased a land during the FY 2021-22 and the purchase value of the land was claimed as application of income for 85% utilization. The said land was sold during FY 2022-23 for a value slightly higher than the purchase value.
What will be treatment of the sale of land during FY 2022-23?
Do we need to treat the entire sales consideration of the land as income of the assessee by taking the same to receipts of the assessee or do we need to declare the same under the head "Income from Capital Gains"?
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