The Tax Publishers2020 TaxPub(DT) 0235 (Guj-HC)

INCOME TAX ACT, 1961

Section 5(1)

Where carbon receipts were neither sold nor transferred by assessee during year under consideration, the same could not be included in the income of the assessee in the year under consideration.

Income - Accrual - Carbon receipts - Carbon receipts being neither sold nor transferred during year under consideration

AO made addition to assessee's income on the ground that carbon receipt receivable / accrued in year under consideration was a capital receipt. However, Tribunal deleted the said addition on the ground that such income had not accrued / received by the assessee in the year under consideration. Held: Since carbon receipts were neither sold nor transferred by assessee during year under consideration, the same could not be included in the income of the assessee in the year under consideration.

Followed: PCIT v. Kalpataru Power Transmission Ltd. (2017) 293 CTR 0484 (Guj): 2017 TaxPub(DT) 0820 (Guj-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2010-11

IN THE GUJARAT HIGH COURT

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