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2022 (3) TMI 149 - AT - Income TaxNature of receipt - Amount received towards carbon credit by excluding from the total income, as being in the nature of capital receipt - HELD THAT:- We noted that during the course of assessment proceedings before the AO, the assessee claimed that it had received a sum during the year towards carbon credit under Clean Development Mechanism (CDM) and incurred expenditure by way of registration fee. The assessee claimed that the amount should be excluded from the total business proceeds as the receipt is in the nature of capital and not revenue. The AO assessed the same as business income. Aggrieved, assessee preferred appeal before CIT(A) and the CIT(A) also confirmed the action of the AO. Aggrieved, assessee is in appeal before the Tribunal. We noted that this issue is covered in the favour of the assessee by the decision of Hon’ble High Court of Madras in the casea of S.P. Spinning Mills Pvt. Ltd.[2021 (1) TMI 1081 - MADRAS HIGH COURT] & CIT vs. Ambika Cotton Mills Ltd. [2021 (3) TMI 442 - MADRAS HIGH COURT] and by the decision of Co-ordinate Bench of this Tribunal in assessee’s own case for the assessment year 2013-14. As the issue is squarely covered in assessee’s own case we consistently following the same allow this appeal of the assessee.
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