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2014 (7) TMI 1157 - AT - Income TaxExclusion of receipts from trading of carbon credit and insurance claim while computing the deduction under sec.80IA - Held that:- We are bound to follow the judgment of the Hon’ble Andhra Pradesh High Court in the case of CIT vs. M/s. My Home Power Ltd. [2014 (6) TMI 82] and hold that the receipts in the hands of the assessee generated out of sale of excess carbon credit are in the nature of capital receipts and, therefore, not includible in the computation of taxable income. Once the entire receipts are excluded from the computation of income itself, there is no question of any separate argument of sec.80IA deduction. As far as carbon credit receipt is concerned, the issue is decided in favour of the assessee. Therefore, the Assessing Officer is directed to exclude the carbon credit receipts from the computation of assessee’s income. - Decided against revenue First initial assessment year for claiming deduction under sec.80IA - depreciation of earlier years (which already have been absorbed) cannot be notionally carried forward and considered in computing the quantum of deduction under sec.80IA - Held that:- This issue is already covered by the judgment of the Hon’ble Madras High Court rendered in the case of CIT v. Velayuthasamy Spinning Mills [2010 (3) TMI 860 - Madras High Court] and held that Commissioner of Income-tax(Appeals) didn't erred in holding that the assessment year 2005-06 is the first initial assessment year in which the assessee claimed deduction under sec.80IA and, therefore, the depreciation of earlier years (which already have been absorbed) cannot be notionally carried forward and considered in computing the quantum of deduction under sec.80IA. - Decided against revenue
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