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2022 (3) TMI 570 - HC - Income TaxReopening of assessment u/s 147 - carbon credit to be treated as capital receipt or not? - HELD THAT:- Division Bench of this Court in the case of Principal Commissioner of Income Tax Vs. L.H.Sugar Factory (P) Ltd. [2016 (3) TMI 367 - ITAT LUCKNOW] has held that carbon credit is a capital receipt. The present controversy arose on account of issuance of notice under Section 148 of the Act for the assessment year 2016-2017, recording reasons not being a capital receipt. Prima facie, the impugned notices under Section 148 of the Act is based on 'change of opinion' which is not permissible under the provisions of Sections 147/148 of the Act. Consequently, the notices dated 6.12.2021 under Section 143(2) and 27.1.2022 under Section 142(1) of the Act are also prima facie without jurisdiction. Since, prima facie, it appears to us that the notice under Section 148 of the Act dated 30.3.2021 is without jurisdiction, therefore, impugned notices are stayed till the next date of listing. Income Tax Department prays for and is granted four weeks time to file counter affidavit. The petitioner shall have two weeks thereafter to file rejoinder affidavit.
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