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2021 (7) TMI 397 - HC - Income TaxNature of receipt - proceeds realized by the assessee on sale of Certified Emission Reduction Credit - assessee had earned it on the Clean Development Mechanisam in its wind energy operations - revenue or capital receipt - HELD THAT:- As decided in S.P. SPINNING MILLS PVT. LTD. [2021 (1) TMI 1081 - MADRAS HIGH COURT] 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. It was also found that the carbon credit is not even directly linked with the power generation and the income is received by sale of the excess carbon credits.Thus it is capital receipt and not business income. - Decided in favour of assessee.
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