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2016 (3) TMI 367 - AT - Income TaxAddition on account of sale of carbon credit - capital receipt or Revenue receipt - Held that:- As decided in case of CIT Vs. My Home Power Ltd. [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] carbon credit is not an offshoot of business but an offshoot of environmental concerns and no assets is generated in the course of business but it is generated due to environmental concerns and therefore, it was held that the Tribunal has correctly held that this is a capital receipt and it cannot be business receipt of income Addition on account of low value of bagasse claimed and sold the same in open market - Held that:- ince the assessee has shown some sales at ₹ 150 per qtl., some at ₹ 130 per qtl. and some at ₹ 120 per qtl. also, it cannot be said that lesser sales proceed of bagasse has been shown by the assessee without bringing some evidence on record, suggesting such reduction in sales proceeds accounted for by the assessee by showing lesser amount of sale proceeds as against actual realization of higher sales proceeds because if the assessee is doing so, then there is no need to show such high sale price of ₹ 120 to ₹ 150 per quintal for about 51,500 Quintals out of total sale of 615,631 Quintals. This has been deleted by the Ld. CIT(A) on this basis that there is no evidence in the possession of the Assessing Officer which goes to prove that the assessee had actually sold the declared bagasse at ₹ 80 per qtl. or at a higher rate then what has been declared by the assessee and in the absence of such information or evidence, no addition can be made in the hands of the assessee MAT computation - inclusion or exclusion of receipt of carbon credits - Held that:- The receipt on account of transfer of carbon credit which is held to be a capital receipt needs to be excluded from profit as per P&L account for the present year while computing the book profit u/s 115JB of the Act.
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