TMI Blog2012 (11) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER Dr. O.K. NARAYANAN, VICE-PRESIDENT This appeal is filed by the assessee. The relevant assessment year is 2009-10. The appeal is directed against the order of the Commissioner of Income-tax(Appeals)-I, at Coimbatore dated 16.4.2012 and arises out of the assessment completed under sec.143(3) of the Income-tax Act, 1961. 2. The grounds raised in original by the assessee in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le for the deduction of ₹ 20,25,207 being the income from sale of Carbon Credit is eligible for deduction u/s 80IA(4)(iv)(a) of IT Act. 6. For these and other grounds that may be taken, it is respectfully submitted and prayed that the orders of the Authorities below may be reversed and deduction u/s 80IA(4)(iv)(a) may be ordered to be allowed in the interests of justice. 3. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re in the nature of capital receipt and therefore, not at all taxable as income. We do not endorse the above view. Income arising as a result of carbon credits awarded to an assessee is gains earned in the course of carrying on business. Therefore, we are inclined to reject the additional ground raised by the assessee. 5. Now coming to the regular grounds, the assessee has a very strong case. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee the benefit of deduction under sec.80IA treating the windmill as a separate and independent business unit. 6. Once the above stand is upheld, the next question is whether the income from carbon credit is to be assessed under other sources or under the head business. There is no basis to treat such income as income from other sources. It is not an income from other source. On the other ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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