INCOME TAX ACT, 1961

Section 28

Business income - Revenue or capital receipt - Transfer of Carbon Credits -

Assessee had realized an amount to transfer of Carbon Credits -- CER (Certified Emission Reductions) and submitted that same was not a receipt in the nature of revenue, but only a capital receipt and therefore not liable to be included in the total income of assessee. Held: Tribunal in the case of CIT v. M/s. My Home Power Ltd. (2014) 365 ITR 82 (AP) : 2014 TaxPub(DT) 2672 (AP-HC) hold that receipts from the sale of the carbon credits was liable to be held as capital receipts only. This view was also supported by decision of Tribunal in case of CIT v. M/s. Chemplast Sanmar Ltd. [ITA Nos. 2957 to 2963 of 2017 dt. 4-12-2019] Consequently, ground filed by assessee stands allowed.

REFERRED : CIT v. M/s. My Home Power Ltd. (2014) 365 ITR 82 (AP) : 2014 TaxPub(DT) 2672 (AP-HC) M/s. Chemplast Sanmar Ltd. v. Dy. CIT ITA Nos. 2957 to 2963 of 2017 dt. 4-12-2019 Asstt. CIT v. M/s. Rajshree Sugars & Chemicals & Vice-Versa. - 2016 (12) TMI 1815 - ITAT Chennai

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 80-IA

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