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2016 (1) TMI 117 - AT - Income TaxEntitlement to deduction u/s.80IA - whether two power generating units situated in the main manufacturing plants producing news print and writing paper, set up for captive consumption as they did not qualify to be considered as separate industrial undertakings within the meaning of clause (iv) of sub-section (4) of sec 80IA? - Held that:- Eligible business were the only source of income during the previous year relevant to initial assessment year and every subsequent assessment years. When the assessee exercises the option, the only losses of the years beginning from initial assessment year alone are to be brought forward and no losses of earlier years which were already set off against the income of the assessee. Looking forward to a period of ten years from the initial assessment is contemplated. It does not allow the Revenue to look backward and find out if there is any loss of earlier years and bring forward notionally even though the same were set off against other income of the assessee and the set off against the current income of the eligible business, Once the set off is taken place in earlier year against the other income of the assessee, the Revenue can not rework the set off amount and bring it notionally. Fiction created in sub-section does not contemplate to bring set off amount notionally. Fiction is created only for the limited purpose and the same can not be extended beyond the purpose for which it is created . See Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT - [2010 (3) TMI 860 - Madras High Court ] - Decided against revenue. Incentive on carbon credit - whether is capital in nature? - Held that:- Similar issue was decided by the Andhra Pradesh High Court in the case of CIT v. My Home Power Ltd. (2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT), wherein it was held that income received from sale of carbon credit is considered as capital receipt and not business receipt and not liable for tax under the Act. Accordingly, we agree with the finding of the Commissioner of Income-tax(Appeals) on this ground and dismiss the ground of appeal taken by the Revenue. - Decided against revenue.
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