TMI Blog2015 (12) TMI 1852X X X X Extracts X X X X X X X X Extracts X X X X ..... omputing the quantum of deduction u/s.80IA? - HELD THAT:- This issue is covered by this Tribunal in favour of the assessee in the case of M/s. Ambika Cotton Mills Ltd. Others [ 2015 (12) TMI 1851 - ITAT CHENNAI] mere pendency of Special Leave Petition before the Apex Court cannot be a reason to take a different view. The judgment of Madras High Court is binding on all the authorities in the State of Tamil Nadu and Union Territory of Pondicherry. Commissioner of Income Tax (Appeals) has rightly allowed the claim of the assessee by following the binding judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd [ 2010 (3) TMI 860 - MADRAS HIGH COURT] - Decided against revenue. - ITA No. 1979/Mds/2014, ITA No. 2096/Mds/2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, the amount received for carbon credits has no element of profit or gain and it cannot be subjected to tax in any manner under any head of income. It is not liable for tax for the assessment year under consideration in terms of sections 2(24), 28, 45 and 56 of the Income-tax Act, 1961. Carbon credits are made available to the assessee on account of saving of energy consumption and not because of its business. Further, in our opinion, carbon credits cannot be considered as a bi-product. It is a credit given to the assessee under the Kyoto Protocol and because of international understanding. Thus, the assessees who have surplus carbon credits can sell them to other assessees to have capped emission commitment under the Kyoto carbon cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Ltd. v. DCIT in ITA No. 631/Mds/2013 for AY 2009-10 11.Sri Shanmugavel Mills (P) Ltd. v. DCIT in ITA No. 619/Mds/2013 for AY 2009-10 12.Arun Textiles Pvt. Ltd. v. ACIT in ITA No.268/Mds/2014 for AY 2009-10 13.India Dyeing Mills Pvt. Ltd. v. ACIT in ITA No.498/Mds/2014 for AY 2009-10 14.DCIT v. Sree Rayalaseema Green Energy Ltd. (2014) [36 ITR (Trib) 627] (Hyd) 15. Eastman Spinning Mills (P) Ltd. v. DCIT in ITA No. 1428/Mds/2014 for AY 2009-10 5. In view of the above, we are inclined to hold that the receipt from sale of carbon credits has to be considered as capital receipt and accordingly, it is not taxable. Thus, there is no question of considering the same for deduction u/s.80IA of the Act. 6. In the result, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not accepted the judgment of Madras High Court and an appeal has already been filed along with Special Leave Petition and the same is pending before the Apex Court. This Tribunal is of the considered opinion that mere pendency of Special Leave Petition before the Apex Court cannot be a reason to take a different view. The judgment of Madras High Court is binding on all the authorities in the State of Tamil Nadu and Union Territory of Pondicherry. Therefore, the Commissioner of Income Tax (Appeals) has rightly allowed the claim of the assessees by following the binding judgment of Madras High Court in Velayudhaswamy Spinning Mills (P) Ltd (supra). Therefore, this Tribunal do not find any infirmity in the order of the Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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