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2021 (9) TMI 376 - HC - Income TaxReceipts from sale of carbon credit - proceeds realized by the assessee on sale of certified emission reduction credit, which the assessee had earned on the clean development mechanism 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. It was found that the Tribunal has rightly held that it is capital receipt and not business income. - Decided against the Revenue.
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