TMI Blog2014 (7) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. [2014 (6) TMI 82] 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. Once the entire receipts are excluded from the computation of income itself, there is no question of any separate argument of sec.80IA deduction. As far as carbon c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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. - Decided against revenue - ITA No. 1428/Mds/2014, ITA No. 1676/Mds/2014 - - - Dated:- 31-7-2014 - Dr. O. K. Narayanan (Vice-President) And V. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of CIT vs. M/s. My Home Power Ltd., 2014 (6) TMI 82, has considered the issue of carbon credit for the purpose of income tax. The court has held that the income received on sale of excess carbon credit is in the nature of capital receipt and it cannot be treated as business income. The learned Joint Commissioner of Income-tax, appearing for the Revenue has relied on the order of the ITAT, Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exclude the carbon credit receipts from the computation of assessee s income. 6. As far as the question of insurance claim for the purpose of sec.80IA is concerned, the same is rejected, as not pressed. 7. The levy of interest under sections 234B and 234C is consequential and the Assessing Officer shall accommodate the consequential reliefs. 8. In the appeal filed by the Revenue, the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court, we find that the order of the Commissioner of Income-tax(Appeals) is just and proper in law, as he has relied on the judgment of the Hon ble Madras High Court rendered in the case of CIT v. Velayuthasamy Spinning Mills, 231 ITR 368. 10. In result, the appeal filed by the assessee is partly allowed and the appeal filed by the Revenue is dismissed. Orders pronounced in the open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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