TMI Blog2015 (11) TMI 1826X X X X Extracts X X X X X X X X Extracts X X X X ..... of the considered opinion that mere pendency of SLP before the Apex Court cannot be a reason for not following the judgment of the jurisdictional High Court. In other words, the judgment of the jurisdictional High Court is binding on all authorities in the States of Tamilnadu and Pondicherry. The CIT(A) has rightly allowed the claim of the assessees by following the judgment of the Madras High Court in Velayudhaswamy Spinning Mills P. Ltd. (supra). Therefore, this Tribunal do not find any infirmity in the orders of the CIT(A) and according the same are confirmed. Receipts from CDM - Revenue or capital receipt - Whether CDM receipts being the one which has been received on account of the power generated through windmills would also qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 123 Deduction u/s.80IA ₹ 4,39,70,580 ₹ 4,62,33,703/- Income assessed ₹ 10,61,72,083/- 3.1 The AO disallowed the claim of the assessee u/s.80IA of the Act, on the reason that the Special Leave Petition filed by the Revenue is pending before the Apex Court against the judgment of the Jurisdictional High Court in the case of CIT v. Velayuthasamy Spinning Mills (231 CTR 368). However, the CIT(Appeals) allowed the claim of the assessee by following the judgment of the Jurisdictional High Court in the case of CIT v. Velayuthasamy Spinning Mills cited supra. Further, the AO disallowed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital but revenue in nature, the Honourable Commissioner of Income tax (Appeals) ought to have appreciated that CDM receipts being the one which has been received on account of the power generated through windmills would also qualify for the benefit u/s.80IA. 3. The Hon. Commissioner of Income tax (Appeals) is right in holding that in view of the binding decision of the Jurisdictional High Court in the case of CIT v. Velayuthasamy Spinning Mills the claim of the appellant u/s.80IA to the extent of ₹ 4,39,70,580/- is allowable 6. After hearing both the parties, we are of the opinion that similar issue was considered by this Tribunal in assessee s own case in ITA No.2174/Mds/2015 dated 19.6.2015 for the assessment year 2010-11, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arbon credits can sell them to other assessees to have capped emission commitment under the Kyoto Protocol. Transferable carbon credit is not a result or incidence of one s business and it is a credit for reducing emissions. The persons having carbon credits get benefit by selling the same to a person who needs carbon credits to overcome one s negative point carbon credit. The amount received is not received for producing and/or selling any product, biproduct or for rendering any service for carrying on the business. In our opinion, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. The same view is supported by the following judicial precedents, which are relied on by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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