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2020 (2) TMI 774 - AT - Income TaxCharacterization of income - Transfer of Carbon Credits – CER (Certified Emission Reductions) - Revenue or capital receipt - HELD THAT:- We are inclined to follow the decision of the Co-ordinate Bench of the Tribunal, Hyderabad Bench in the case of My Home Power Limited (supra) to hold that the receipts from the sale of the carbon credits is liable to be held as capital receipts only. This view of ours is also supported by the decision of the Co-ordinate Bench of this Tribunal in the case of Assistant Commissioner of Income Tax Vs. M/s. Chemplast Sanmar Limited [2019 (12) TMI 1272 - ITAT CHENNAI] Consequently, the additional ground filed by the assessee stands allowed. Computation of deduction u/s.80IA - CIT(A) in confirming the method of computation of the eligible profits done by the Assessing Officer in respect of the steam generated and re-transmitted in respect of the production of the electricity through steam generators, for the purpose of computation of deduction u/s.80IA - HELD THAT:- The learned Authorized Representative though submitted a Chartered Engineer’s certificate but was unable to substantiate the claim as made the said certificate. DR left the court room after the argument on the additional grounds and did not return. In reply, there was no answer from the learned CIT-DR As the AR has been unable to substantiate the Chartered Engineer’s Certificate and has been unable to show us as to how the order of the CIT(A) is erroneous, we find no reason to interfere in the findings of the CIT(A). Consequently the order of the learned CIT(A) on this issue stands confirmed. Commission paid to a person outside India in respect of arranging the sale of the carbon credits - HELD THAT:- As we have already held that the receipt on the sale of carbon credits is liable to be treated as capital receipts, admittedly, the expenditure incurred by the assessee in respect of the sale of the carbon credits cannot be treated as Revenue expenditure at all. However, the Assessing Officer is also directed to see to it that when the capital receipt is computed, the said expenditure is reduced from the said capital receipts for determining the net capital receipts.
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