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2017 (10) TMI 1458 - HC - Income TaxNature of expenditure - compensation paid to land owners/farmers for using their land for extraction of minerals - Contribution by the assessee to State Renewal Fund and Social Welfare Activities u/s 37(1) - Revenue or capital expenditure - HELD THAT:- Issue decided in M/S RAJ STATE MINES AND MINERAL LTD [2017 (10) TMI 1457 - RAJASTHAN HIGH COURT] as held that the expenses which gives fruitful result require to be done according to the necessity of relevant time and development with the nature of expenses. It cannot be capital expenses and is to be considered as revenue expenses. - Decided in favour of the assessee. Sale proceeds received by the company from the sale of Certified Emission Reduction (CER) pertaining to Carbon Credit - Revenue or capital receipt - HELD THAT:- We find that the Appellate Tribunal in My Home Power Ltd. Vs. DCIT [2012 (11) TMI 288 - ITAT HYDERABAD] have, after detailed examination, concluded that the receipts from Carbon credit are capital in nature. We are inclined to follow the said decision and the other two decisions of Chennai Tribunal in Sri Velayudhaswamy Spinning Mills (P.) Ltd. Vs. DCIT [2015 (4) TMI 132 - ITAT CHENNAI] and Ambika Cotton Mills Ltd. Vs.DCIT [2016 (9) TMI 394 - ITAT CHENNAI] where also it has been held that receipt on account of Carbon Credit is capital in nature & neither chargeable to tax under the head Business Income nor liable to tax under the head Capital Gains. Provision for Mines Closure - Deduction in respect of Mines Closure Expenses - the said expenditure was not even debited in the books of accounts and is also not an ascertained liability - ITAT allowed the deduction - HELD THAT:- It is not reflected in the books of accounts without taking closure of a mining is a statutory liability and the same is for the subsequent year reflected, therefore, in view of the decision rendered by the tribunal BHARAT EARTH MOVERS VERSUS COMMISSIONER OF INCOME-TAX [2000 (8) TMI 4 - SUPREME COURT] we are of the opinion that the tribunal has not committed any error.
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