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2021 (11) TMI 75 - AT - Income TaxNature of receipt - receipt in respect of Renewal Energy Certificates akin to carbon receipts - revenue or capital receipt - HELD THAT:- Hon’ble Jurisdictional High Court in the case of CIT v. Ambika Cotton Mills Ltd. [2021 (3) TMI 442 - MADRAS HIGH COURT] has held that the proceeds received by the assessee company carrying on business of power generation on sale of certified emission reduction credit (carbon credit) is a capital receipt and not business income as carbon credit is not an offshoot of business, but an offshoot of environmental concerns. We hold that the proceeds received by the assessee is capital receipt. No reason to interfere with the order of the ld. CIT(A) and accordingly, the ground raised by the Revenue is dismissed. Belated payment towards PF & ESI contribution - AO disallowed the same on the ground that the payment was delayed, which cannot be allowed under section 43B - HELD THAT:- As appellant has made the remittance of employees contribution towards PF/ESI account before the due date of filing of the Return of Income u/s 139(1) of the Act and, therefore, it is held that no disallowance can be made u/s 43B - As gone through the assessment order and appellate order and find no infirmity in the order passed by the ld. CIT(A). Accordingly, this ground of appeal of the Revenue is dismissed.
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