Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 809 - AT - Income TaxDisallowance from the sale of carbon credit u/s 80lA - sale of carbon credit - Held that:- There is no dispute about the nature of receipts arising from sale of carbon credits as the decision of My Home Power Ltd vs DCIT (2012 (11) TMI 288 - ITAT HYDERABAD) has been upheld [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] holding therein that the same are not an offshoot of business but arise from environmental concerns. Their lordships have also observed that these carbon credits are not directly linked with power generation. It has been held as ‘capital’ and not a revenue receipt. It is to be seen that the CIT(A) applies ‘estoppel’ principle against the assessee. The assessee had declared the carbon credit sale receipts as income due to the fact that it is otherwise entitled for section 80IA deduction. In the lower appellate proceedings, it had sought to withdraw the said declaration. The CIT(A) has not quoted any specific provision barring such an alternative plea. In these facts only, we observe that as the substantial question of law has been settled against the Revenue about nature of the receipt, the assessee is entitled for acceptance of its alternative claim. So, we accept the relevant grounds and hold that carbon credit receipts have to be treated as ‘capital’ in nature.
|