TMI Blog2017 (3) TMI 1902X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the income from sale of CERs in future year. It is not in dispute that so far as the year under consideration for which the appeal was before the learned Tribunal has confirmed the order passed by the learned CIT(A) deleting the addition by observing that no such income has been received by the assessee in the year under consideration as there was neither any sale nor transfer of the carbon receipts in favour of any foreign companies during the year under consideration. Therefore, as such the issue before the learned Tribunal was as such academic. Therefore, keeping the said question open to be considered in accordance with law in the year in which the income is derived from sale of CERs, Tribunal ought to have disposed of the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RKAR, SR. ADVOCATE WITH MR BS SOPARKAR, ADVOCATE FOR THE APPELLANT MR SUDHIR M MEHTA, ADVOCATE FOR THE OPPONENT ORAL ORDER (PER : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order dated 18.03.2016 passed by the learned Income Tax Appellate Tribunal, Ahmedabad (hereinafter referred to as Tribunal ) in ITA No.538/Ahd/2013 for AY 2009-10, by which some of the observations are made by the learned Tribunal with respect to whether the carbon receipts can be said to be capital receipts or not and also in confirming the additions made by the learned CIT(A) with respect to the disallowance of the administrative expenses under Section 14A of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking a view that such sale of CERs amount to capital receipt without referring the matter to Special Branch? (f) Whether ITAT has erred in reversing the order of CIT(A) and confirming the order of the AO to the extent of confirming disallowance under Rule 8D r.w.s. 14A? [2.0] Now, so far as proposed questions of law Nos.(a) to (e) are concerned, Shri S.N. Soparkar, learned Senior Advocate appearing on behalf of the appellant ahs vehemently submitted that once the learned Tribunal has held that taxing event had not taken place during the current year under consideration, the learned Tribunal ought not to have made any observation and/or procedure to examine the taxability in the future year when the same was not before the learned Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be said to be a revenue receipt excisable to taxation. Shri Soparkar, learned Counsel appearing on behalf of the assessee has submitted that in that case it may be specifically observed that the aforesaid question is kept open to be considered and decided in accordance with law in the year in which the income from sale of CERs is received. [4.0] Shri Sudhir Mehta, learned Counsel appearing on behalf of the Revenue is not in a position to satisfy whether in the facts and circumstances of the case more particularly when the learned Tribunal has specifically observed and held that the income from sale of CERs has not taken place in the years under consideration, the learned Tribunal was justified in thereafter proceeding further and to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l ought not to have decided the issue which as such was academic before it. Therefore, while quashing and setting aside the observations made by the learned Tribunal with respect to the income derived from carbon receipts and/or on sale of CERs, we hold the question in favour of the assessee and against the Revenue by keeping the said question open to be considered in accordance with law in the year in which the income from sale of CERs is received. Under the circumstances, we hereby set aside the observations made by the learned Tribunal with respect to the income from sale of CERs, made in the impugned judgment and order, however keeping the said question open to be considered in accordance with law and in the year in which the income fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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