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2023 (7) TMI 7 - AT - Income TaxNature of receipts - sale of carbon credits - revenue or capital receipts - HELD THAT:- Admittedly, the issue came for consideration before this Tribunal in assessee’s own case for AYs 2013-14 & 2014-15 [2020 (11) TMI 174 - ITAT BANGALORE] held that the sale of carbon Credit is a capital receipt and his finding on this aspect has attained finality because no appeal is filed by the revenue against this finding of Ld. CIT (A). Once it is accepted that the receipt in question is a capital receipt, this judgment of Hon’ble Calcutta High Court rendered in case of CIT vs. Ankit Metal & Power Ltd. [2019 (7) TMI 878 - CALCUTTA HIGH COURT] becomes applicable as duly considered the judgment of Appollo Tyres [2002 (5) TMI 5 - SUPREME COURT] and held that where a receipt is not in the nature of income at all, it cannot be included in Book Profit under Section 115JB . Also see M/S. CHEMPLAST SANMAR LIMITED case [2019 (12) TMI 1272 - ITAT CHENNAI] as held the receipts arising to the assessee herein on the sale of carbon credits is held to be capital receipt. Carbon credits cannot be considered as an income in the assessment year 2012-13 and insertion of new section 115BBE of the Act, which was introduced from 1.4.2018 is only prospective in nature and cannot be applied to the assessment year 2012-13. These grounds of revenue are dismissed.
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