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2021 (5) TMI 93 - HC - Income TaxCharacterization of receipts - Revenue or capital receipt - proceeds realized by the assessee on sale of Certified Emission Reduction Credit earned on the Clean Development Mechanism in its wind energy operations - HELD THAT:- As relying on S.P.Spinning Mills Pvt. Ltd [2021 (1) TMI 1081 - MADRAS HIGH COURT] and Ambika Cotton Mills Ltd [2014 (3) TMI 428 - ITAT CHENNAI]wherein held that carbon credit receipts cannot be considered as business income and it is a capital receipt. Hence, the assessee's claim under Section 80IA of the Act is untenable, as deduction under Section 80IA of the Act is allowable only on profits and gains derived by an undertaking. Thus the questions of law are decided against the Revenue and in favour of the assessee.
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