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2022 (12) TMI 1484 - AT - Income TaxDisallowance of expenses u/s 14A - addition to the book profits of the assessee u/s115JB of the Act the amount of total disallowance computed u/s 14A - HELD THAT:- We hold that the disallowance u/s 14A of the Act of expenses incurred for the purposes of earning exempt income be restricted to the extent of exempt income earned by the assessee during the year in accordance with the decision of the Hon’ble jurisdictional High Court in the case of the assessee itself as cited before us. [2019 (7) TMI 541 - GUJARAT HIGH COURT] Further, we direct that no adjustment be made to the book profits of the assessee under Section 115JB of the Act of the expenses disallowed under Section 14A of the Act again following the decision of the jurisdictional High Court in the case of the assessee itself and the Special Bench of the ITAT in the case of Vireet Investment Private Limited [2017 (6) TMI 1124 - ITAT DELHI] Deduction u/s 80IA - Captive Power Generation Plants - Hon’ble jurisdictional High Court in own case in Tax Appeal Nos. 11 & 28 of 2019 vide order dated 17.06.2019.[2019 (7) TMI 541 - GUJARAT HIGH COURT] held that it was the selling price of electricity which was to be considered for determining the Revenue generated from sale to CPP for the purposes of computing profits eligible to deduction u/s 80-IA(4) of the Act, applying the ratio laid down by it in the case of Gujarat Alkalies [2016 (10) TMI 1111 - GUJARAT HIGH COURT] DR was unable to point out any distinguishing facts nor was any contrary decision of the Hon’ble jurisdictional High Court or the Hon’ble Apex Court brought to our notice. Thus since the issue already stands decided in favour of the assessee in its own case by the Hon’ble jurisdictional High Court, the disallowance made by the Assessing Officer and confirmed by the learned CIT(A) of deduction claimed under Section 80IA of the Act. Characterization of receipt - revenue from Carbon credit - revenue or capital receipt - HELD THAT:- The issue being covered by the decision of the Hon’ble jurisdictional High Court in favour of the assessee in its own case, we hold that the profit earned by the assessee for Carbon Credits is capital in nature; and, the addition made by the Revenue by treating them as revenue in nature is directed to be deleted.
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