TMI Blog2015 (5) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... toppel’ 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. - I.T.A.No.2091/Mds/2013 - - - Dated:- 17-7-2014 - SHRI A. MOHAN ALANKAMONY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held in the following cases that the amount received as carbon credit (CDM) by realisation of carbon credit sales is to be considered as Capital receipt and not income liable to tax. i. My Home Power Ltd. Vs Dy. CIT (2013) 21 ITR (Trib) 186 (Hyd) ii. Ambika Cotton Mills Ltd. Vs Dy. CIT (2013) 27 ITR (Trib) 44 (Chn) iii. Sri Velayudhasamy Spinning Mills P. Ltd., Vs Dy. CIT (2013) 27 ITR (Trib) 106 (Chn) 7. The Commissioner (Appeals) erred in not giving a specific direction to exclude the receipt of ₹ 72,94,322/- being receipts of carbon credit pertaining to the assessment year 2009-10 in computing the total income of the present year. 3. The assessee is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessment order and the submissions of the assessee would indicate that the assessee has admitted an amount of ₹ 1,18,78,061/- as revenue receipts in their return of income as under: Receipts in assessment year 2009-10 ₹ 72,94,322 Receipts in assessment year 2010-11 ₹ 45,83,739 Rs.1,18,78,061 The total amount of the said amounts were taken as revenue receipts for the year under consideration and the assessee's claim of 80lA relief for the amount of ₹ 1,18,78,061/-. In appeal claimed that these are capital receipts as per the order of the ITAT C Bench Chennai in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the particular activity. 7.5 Hence considering the facts of the case and the decision of the honorable Supreme Court in sterling foods, revenue from sale of carbon credits cannot be treated as eligible for deduction under section 80IA. However, considering the facts and circumstances it indicate that the receipts from sale of carbon credit cannot be treated as derived from the undertaking and also the apex court decision in the case of Sterling foods reiterated in Liberty India Vs. Commissioner of Income Tax (317 ITR 218) the claim of the 80lA cannot stand the test of law and hence disallowed. 7.6 Regarding the quantum of relief the Assessing Officer may examine whether receipts from 2009-10 is to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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