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2014 (5) TMI 553 - AT - Income TaxNature of receipt - capital receipt or revenue receipt - addition under carbon credits scheme – Switching of Fossil Fuel from Naptha & Diesel to Biomass (agriculture produce) - Held that:- Following My Home Power Ltd. Versus Deputy Commissioner of Income-tax, Central Circle – 7 [2012 (11) TMI 288 - ITAT HYDERABAD] - Carbon Credit is not an offshoot of business but an offshoot of environmental concerns - No asset is generated in the course of business but it is generated due to environmental concerns - the assessee is carrying on the business of power generation - The Carbon Credit is not even directly linked with power generation - On the sale of excess Carbon Credits the income was received and it is capital receipt and it cannot be business receipt or income - the receipt on sale of carbon credits is a capital receipt and deleted the addition made by the AO – Decided against Revenue.
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