9911796707
TMI Blog2022 (7) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income Tax (Appeals) {hereinafter referred to as the CIT(A)} erred in confirming the disallowance of the claim of Carbon Credit Income as Capital Receipt of Rs. 10,20,587/-. 2. That on the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in confirming the disallowance of common expenses of Rs. 59,27,000/-. 2. Brief facts of the case are that the assessee-company filed its return of income on 30.09.2015 declaring a total loss of Rs. 229,54,99,761/-. The case was selected for scrutiny under CASS. 3. During the year under consideration, the assessee was engaged in the business of (i) Raising of Ore, (ii) Mfg. Of Nitrogen Gas & Ferro Alloys, (iii) Trading of Iron Ore & Ferro Alloys, (iv) Generation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses of Rs.59, 27,000/-. It is seen that while completing the assessment, the Assessing Officer held that profits shown in S8OIA units appears to be higher than actual profit on account of not debiting of expenses in respect of travelling and conveyance amounting to Rs.59,27,000/- to the -Units claimed deduction u/s.80IA is disallowed to the extent of Rs.59,27,000/-. He therefore allocated additional travelling expenses of Rs. 59, 27,000/- to the 80IA Units, in the ratio of their turnover to the total turnover and thus reduced deduction u/s 80IA by equivalent amount. 12.1 During the course of appellate proceedings, assessee relied upon decision of CIT(A) - 6, Kolkata, who allowed relief to the assessee on this issue in AY 2012-13, vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and travelling expenses and the Assessing Officer is directed not to disturb the same. The appellant thus gets part relief." 16. from the above decision, it is clear that while deleting the addition he followed the earlier decision of CIT (A)-6 Kolkata for AY 2009-10. Therefore, it appears that the merit of the issue was not examined in the above decision. Since the decision of CIT (A)-6 Kolkata for AY 2009-10 is not before me, J am not in a position to offer any comments thereon. Further, my Ld. predecessor while deciding this issue vide order dated 26/12/2017, has followed the order of CIT(A)-6 Kolkata for AY 2012-13 and noted that allocation of travelling and conveyance expenses in the said order was reasonable. However, it appears tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veyance expenses and how the same has been allocated between various units, f am inclined to uphold the decision of the Assessing Officer in the allocating further expenses of Rs.59,27,000/- in the hands of the assessee for the year. 12.3 Consequently, I also upheld decision of the Assessing Officer in reducing deduction u/s.80IA of the Act by an amount of Rs. 5927000/- for the year. This ground of appeal is therefore, decided against the assessee." 7. Assessee relied upon the decision of CIT (A)-6, Kolkata (AY 2012-13) and ITAT's decision in the case of assessee itself for AY 2009-10 and 2010-11. Wherein it was held that Director's remuneration and Auditor's remuneration should be allocated proportionately as calculated by AO and Legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, w.e.f. 1-4-2018: Tax on income from transfer of carbon credits. 115BBG. (1) Where the total income of an assessee includes any income by way of transfer of carbon credits, the income tax payable shall be the aggregate of- (a) the amount of income-tax calculated on the income by way of transfer of carbon credits, at the rate of ten per cent; and (b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a). (2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that the issue for our adjudication is squarely covered by the aforesaid decisions relied upon by the learned Counsel wherein in one of the cases relied upon in CIT v/s My Home Power Ltd., [2014] 365 ITR 082 (AP) (supra) filed by the Revenue, the Hon'ble Andhra Pradesh High Court held that the Tribunal had factually found that Carbon Credit was not off-shoot of business but off-shoot of environmental concerns and no asset was generated in course of business but it was generated due to environment concerns. Further we find that the Hon'ble A.P. High Court agreed with the factual analysis as the assessee carried on business of power generation and Carbon Credit was not even directly linked with power generation. It is held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
