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2018 (1) TMI 838 - AT - Income TaxReceipts on account of carbon credit - Held that:- Receipts on account of carbon credit is not in the nature of income and not chargeable to tax. See case of CIT Vs. My Home Power Ltd. [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] wherein it was held that "carbon credit was not an offshoot of business of the assessee but an offshoot of environmental concerns. No asset was generated in the course of business but it was generated due to environmental concerns. There was no cost of acquisition or cost of production to get entitlement for the carbon credits - Decided against revenue Acceptance of revised return - the assessee in the return of income did not make any claim that receipts on account of carbon credit is not taxable - Held that:- CIT(A) being the First Appellate Authority has the power to entertain a new claim even in the absence of a revised return of income. The Supreme Court in case of Goetze (India) Ltd. (2006 (3) TMI 75 - SUPREME Court) has clarified that "the decision was restricted to the power of the assessing authority to entertain a claim for deduction otherwise than by a revised return, and did not impinge on the power of the Appellate Tribunal under section 254 of the Income-tax Act, 1961”. CIT(A) was right in accepting the revised claim regarding non taxable of carbon credits. Accordingly ground no.2 raised by the revenue is also dismissed.
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