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2019 (5) TMI 1540 - AT - Income TaxTaxability of Carbon credit receipts - nature of receipts - revenue or capital receipts - HELD THAT:- Identical issue came up in assessee’s own case for AY 2009-10 [2016 (4) TMI 916 - ITAT AHMEDABAD] receipts received by the assessee on sale of carbon credit are to be treated as capital receipts and not liable to tax once both the parties are unanimous on the factual aspect that the sale is not effected in the relevant previous year, there cannot be any good reasons to bring the CER value to tax in this assessment year. In view of the above discussions, in our considered view, the gains on sale of CERs, though taxable in nature, could only have been taxed at the point of time when these CERs were actually transferred to the foreign entity. Accordingly, the value of CERs, even though quantifiable, cannot be brought to tax by the reason of accrual simplictor. That is precisely what has been done in this case. It is for this reason that we confirm the relief granted by the CIT(A) and decline to interfere in the matter. - Decided in favour of assessee. Disallowance u/s 14A read with Rule 8D - quantum of disallowance - HELD THAT:- As held in assessee’s own case [2016 (4) TMI 916 - ITAT AHMEDABAD] we find that its not even in dispute that a part of expenses attributable to the work in connection with the investment are to be disallowed, as the assessee has on its own offered ₹ 30,000 for disallowance in this regard. The dispute is confined to the quantum of disallowance and the basis on which it is to be quantified. In the absence of any reasonable basis of disallowance offered by the assessee, and in the absence of the assessee even disclosing the basis on which disallowance is made, the Assessing Officer had invoked the rule 8D. We see no infirmity in this action. In view of these discussions, as also bearing in mind entirety of the case, we vacate the relief granted by the CIT(A) and restore the disallowance made by the Assessing Officer. - Decided against assessee. Rejection of claim of additional depreciation u/s 32(l)(iia) - plant & machinery were used for less than 182 days, the claim of additional depreciation during AY 2010-11 was restricted to 50% - HELD THAT:- We find that the CIT(A) has appreciated the facts and loan in perspective and has rightfully came to a conclusion that assessee was entitled to remaining part of 50% of the claim of the additional depreciation eligible under s.32(1)(iia) of the Act in the subsequent assessment year adopting purposive approach to the issue. We thus find no infirmity in the view taken by the CIT(A) and therefore decline to interfere. - Decided against revenue
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