TMI Blog2023 (7) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... OURT] becomes applicable as duly considered the judgment of Appollo Tyres [ 2002 (5) TMI 5 - SUPREME COURT] and held that where a receipt is not in the nature of income at all, it cannot be included in Book Profit under Section 115JB . Also see M/S. CHEMPLAST SANMAR LIMITED case [ 2019 (12) TMI 1272 - ITAT CHENNAI] as held the receipts arising to the assessee herein on the sale of carbon credits is held to be capital receipt. Carbon credits cannot be considered as an income in the assessment year 2012-13 and insertion of new section 115BBE of the Act, which was introduced from 1.4.2018 is only prospective in nature and cannot be applied to the assessment year 2012-13. These grounds of revenue are dismissed. - ITA No.175/Bang/2023 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al filed by the department on the identical issue in the case of M/s. My Home Power Ltd., Hyderabad (Civil Appeal No. 2108/2016) is pending for disposal before the Hon'ble Supreme Court of India and the issue has not reached finality by the decision of the Hon'ble Apex Court. 4. Any other ground that may be raised subsequently. 2. Facts of the issue are that in the assessment year under consideration, assessee has claimed the exemption in respect of sale of carbon credits at Rs.10,94,54,915/- stating that this is a capital receipt not chargeable to tax. On appeal by placing reliance on the various decisions in assessee s own case NFAC has allowed the appeal of the assessee. Against this revenue is in appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal vide order dated 18.3.2016 has held as under: 10. We have heard both sides, perused the materials on record and gone through the orders of authorities below. We find that the issue of carbon credits receipts has been considered by the Coordinate Bench of the Tribunal in the case of My Home Power Ltd. v. DCIT (supra) and held that these receipts are capital receipts. When the matter carried has been carried by the Department before the Hon'ble High Court of Andhra Pradesh, the Hon ble High Court confirmed the order of the Tribunal by holding as under: ITAT have considered the aforesaid submission and ITAT are unable to accept the same, as the learned Tribunal has factually found that Carbon Credit is not an offshoot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the said receipts are not brought to tax under the various Clauses of business income. The legislature s intention itself being to tax the said receipts under a special category clearly shows that the receipts in the sale of the carbon credits prior to 01.04.2018 was in fact liable to be treated as a capital receipt only. Further, it is noticed that the issue of carbon credits has already been decided by the Coordinate Bench of this Tribunal in the case of Ambika Cotton Mills Limited reported in I.T.A.1836/Mds/2012 dated 16.04.2013 as also in the case of Sri Velayudhaswamy Spinning Mills (P) Limited in I.T.A. No.582/Mds/2013 by following the decision of the Co-ordinate Bench of this Tribunal, Hyderabad Bench in the case of My Home Power ..... X X X X Extracts X X X X X X X X Extracts X X X X
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