2014 (6) TMI 82 - HC - Income Tax

Sale of carbon credits – Capital receipt or not – No cost of acquisition of production –Held that:- The Tribunal was rightly of the view that “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 -” Carbon Credit is not even directly linked with power generation - on the sale of excess Carbon Credits the income was received it is capital receipt and it cannot be business receipt or income – Decided against Revenue.