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2015 (11) TMI 1826 - ITAT CHENNAIDisallowance u/s.80IA - assessee company engaged in the business of spinning cotton yarn and generation of electricity through wind mill - AO disallowed the claim of the assessee u/s.80IA on the reason that the Special Leave Petition filed by the Revenue is pending before the Apex Court against the judgment of the Jurisdictional High Court in the case of Velayuthasamy Spinning Mills [2010 (3) TMI 860 - MADRAS HIGH COURT] - HELD THAT:- It is not the case of the Revenue that the judgment of the Madras High Court in Velayudhaswamy Spinning Mills P. Ltd(supra) is stayed by the Apex Court. This Tribunal is of the considered opinion that mere pendency of SLP before the Apex Court cannot be a reason for not following the judgment of the jurisdictional High Court. In other words, the judgment of the jurisdictional High Court is binding on all authorities in the States of Tamilnadu and Pondicherry. The CIT(A) has rightly allowed the claim of the assessees by following the judgment of the Madras High Court in Velayudhaswamy Spinning Mills P. Ltd. (supra). Therefore, this Tribunal do not find any infirmity in the orders of the CIT(A) and according the same are confirmed. Receipts from CDM - Revenue or capital receipt - Whether CDM receipts being the one which has been received on account of the power generated through windmills would also qualify for the benefit u/s.80IA.? - HELD THAT:- Receipt from sale of carbon credits has to be considered as capital receipt and accordingly, it is not taxable. Thus, there is no question of considering the same for deduction u/s.80IA.
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