2014 (7) TMI 1157

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..... ondent : Guru Bhashyam (IRS JCIT) ORDER Dr. O. K. Narayanan (Vice-President) These are two cross appeals filed by the assessee and the Revenue. The relevant assessment year is 2010-11. The appeals are directed against the order of the Commissioner of Income-tax(Appeals)-II at Coimbatore dated 27.3.2014 and arise out of the assessment completed under sec.143(3) of the Income-tax Act, 1961. 2. I .....

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..... d that receipt on sale of carbon credit is revenue in nature. 4. We are bound to follow the judgment of the Hon'ble Andhra Pradesh High Court in the case of CIT vs. M/s. My Home Power Ltd., and hold that the receipts in the hands of the assessee generated out of sale of excess carbon credit are in the nature of capital receipts and, therefore, not includible in the computation of taxable income. .....

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..... the first initial assessment year in which the assessee claimed deduction under sec.80IA and, therefore, the depreciation of earlier years (which already have been absorbed) cannot be notionally carried forward and considered in computing the quantum of deduction under sec.80IA. 9. This issue is already covered by the judgment of the Hon'ble Madras High Court rendered in the case of CIT v. Velay .....

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