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...Tribunal has factually found that “carbon credit is not an offshoot of business but an offshoot of environmental concerns. No asset is generated in the course of business but it is generated due to...environmental concerns”.4. We agree with this factual analysis as the assessee is carrying on the business of power generation. The carbon credit is not even directly linked with power...in law, the Income-tax Appellate Tribunal is correct in holding that the sale of carbon credits is to be considered as capital receipt and not liable for tax under any head of income under Income-tax...
...light of the above, let us examine the facts of the present case. There is no dispute that the assessee is in the business of Hydro Power Project. It has earned carbon credit which has been rated by the...agency and it has
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sold those carbon credit to a Japanese Company. The details indicating service from carbon...management service, allotment of letter of carbon credit, sale bill for sale of carbon credits are available on page Nos. 102 to 110 of the paper book. The ITAT Hyderabad has decided this issue for the first...
...circumstances of the case, the ITAT was justified in deleting the addition made by Assessing Officer on account of Carbon Credit Rs. 2,77,08,800/- as it can be safely concluded by following the...decision of ITAT Cochin Bench in order dated 07.03.2014 passed in ITA No. 4 (Coch.) of 2013 that the earning of Carbon Credit is primarily linked with the very activity of generation of electricity and it...cannot be separated from the same under any circumstances and the income on sale of Carbon Credit would form part of chargeable income under Income Tax Act, 1961.5. Learned counsel for...
...solitary common issue arising in both the appeals of the Department is in relation to the decision of the ld CIT (A) accepting assessee's claim that consideration received on sale of CERC (Carbon Credit Emmission...assessee has established biomass project in Nizamabad District of Andhra Pradesh. For both the A.Ys under consideration, assessee has received carbon credit from the activity of generating power through...biomass. The carbon credit received by the assessee were sold to a foreign company M/s Carbon Estate Services Sweden AB, Stockholm, Sweden and assessee received amounts of Rs. 2,80,39,592 and Rs...
...on this issue. The matters needs to be kept alive till the outcome of the final decision by the Supreme Court. 2.3 The Ld 'CIT(A) erred in directing the AO to delete the addition of Carbon credit for...B17.86 crores 2.4 The Ld CIT(A) failed to appreciate that the assessee itself has recognized the carbon credit receipts to the extent of Rs.6.25 crores as revenue receipt in the earlier AY 2007...- 08. Since the assessee is following mercantile system of accounting, by quantifying the amount of carbon credit income it its accounts, it amply clear that the income has already...
...decision of Cochin Bench of the tribunal in the case of Apollo Tyres Ltd., v. ACIT reported as 31 ITR (Trib) 477. Wherein, the Tribunal has held income from sale of carbon credit as...Power Ltd. v. DCIT (supra) has held carbon credit as capital receipts. The relevant extract of the findings of the co-ordinate Bench are as under:- 24. We have heard both...the parties and perused the material on record. Carbon credit is in the nature of "an entitlement" received to improve world atmosphere and environment reducing carbon, heat and gas emissions. The...
..., the ld. CIT(A) confirmed the order of the Assessing Officer by observing that the carbon credit receipts of the assessee are not derived from generation of electricity by the wind mill...) and held that the carbon credit receipts are capital in nature. 6. On the other hand, the ld. DR supported the order passed by the Assessing Officer. 7. We...have heard both sides, perused the materials on record and gone through the orders of authorities below. The only issue involved in this appeal is whether the carbon credit receipts received by the...
...(Carbon Credit Emmission Reduction Certificate) is capital receipt, hence not taxable.
2. Briefly, the facts are assessee is a company engaged in generation of power through...
Pradesh. For both the A.Ys under consideration, assessee has received carbon credit from the activity of generating power through biomass. The carbon credit received by the...noticing the fact that assessee has considered the amounts received towards carbon credit as part of the profit of eligible business, opined that receipts from sale of carbon credits cannot be considered...
...raised the following grounds of appeal: 2. The Commissioner (Appeals) erred in confirming the disallowance of the claim of Rs.45,83,739/- from the sale of carbon credit under...section 80lA of the Act. 3. The Commissioner (Appeals) erred in upholding the view of the assessing officer that receipts from transfer of carbon credit cannot be treated as derived...the receipts on sale of carbon credit being capital receipts are not income liable to tax. 5. The Commissioner (Appeals) has gone wrong in holding that the appellant having...
.../- I.T.A. No.1836/M/12 2 claimed as capital receipt re Clean Development Mechanism (CDM) by realizing carbon credit, `.660/- for delayed payment of TDS, `.89,690/- on account of interest on TDS and that of...(Hyderabad Trib.) titled as My Home Power Ltd. v. DCIT (qua realization of carbon credit) and prays for acceptance of the appeal. 4. Opposing this, the Revenue draws...the said amount represented entire carbon credit realized in coordination with aforesaid association of spinning mills. It further pleaded to have indulged in aforesaid activity for welfare of its...
...assessee's claim of deduction under section 80IA of the Act in respect of the power generation unit found that the assessee has treated the income of Rs. 32,70,135 from sale of carbon credit as profit from...the power generation business and has claimed deduction under section 80IA of the Act. The Assessing Officer being of the view that income received from sale of carbon credit is not eligible for...of carbon credit is in the nature of capital receipt, hence, not taxable. Further, the assessee submitted, in case it is held as income of the assessee, then it should be considered as arising out of...
...in appeals by the Revenue is as to whether the CIT(Appeals) was justified in deleting the disallowance of deduction made by the AO U/S 80IA in respect of carbon credit.
3...of carbon credit is a capital receipt in view of judgment of Hon'ble Andhra Pradesh High Court in the case of CIT vs. My Home Power Ltd...
Cement Ltd. vs. Addl. CIT ITA No. 1348/Mum/2012 for assessment year 2008- 09 has accepted this very issue as additional ground...
...book profit was at Rs.33,92,06,808/- The assessee claimed a deduction in respect of income from generation of power and sale of carbon credit amounting to Rs.1,20,86,455/-. The AO has examined the...issue of inclusion of amount received on sale of carbon credit, while computing the eligible business in the claim of deduction u/s 80IA of the IT Act. According to the AO, the amount in question was...Industrial Co. Ltd., Vs CIT, 113 ITR 84 (SC) etc. the AO has finally held that the sale on "carbon credit" was neither having direct nor having immediate nexus with the income from power...
...in appeals by the Revenue is as to whether the CIT(Appeals) was justified in deleting the disallowance of deduction made by the AO U/S 80IA in respect of carbon credit.
3...of carbon credit is a capital receipt in view of judgment of Hon'ble Andhra Pradesh High Court in the case of CIT vs. My Home Power Ltd...
Cement Ltd. vs. Addl. CIT ITA No. 1348/Mum/2012 for assessment year 2008- 09 has accepted this very issue as additional ground...
...in appeals by the Revenue is as to whether the CIT(Appeals) was justified in deleting the disallowance of deduction made by the AO U/S 80IA in respect of carbon credit.
3...of carbon credit is a capital receipt in view of judgment of Hon'ble Andhra Pradesh High Court in the case of CIT vs. My Home Power Ltd...
Cement Ltd. vs. Addl. CIT ITA No. 1348/Mum/2012 for assessment year 2008- 09 has accepted this very issue as additional ground...
...in appeals by the Revenue is as to whether the CIT(Appeals) was justified in deleting the disallowance of deduction made by the AO U/S 80IA in respect of carbon credit.
3...of carbon credit is a capital receipt in view of judgment of Hon'ble Andhra Pradesh High Court in the case of CIT vs. My Home Power Ltd...
Cement Ltd. vs. Addl. CIT ITA No. 1348/Mum/2012 for assessment year 2008- 09 has accepted this very issue as additional ground...
...assessment year 2009-10. 2. The only issue involved in this appeal is whether the income received from sale of carbon credit is revenue or capital in nature. ITA No. 1583/15 :- 2...that carbon credit receipts have to be treated as capital in nature. While holding so, the Tribunal has observed as under: 5. In lower appellate proceedings, the assessee contended...that his total carbon credit receipts reading ` 1,18,78,061/- comprised of `72,94,322/- in preceding assessment year 2009-10 and `45,83,739/- in the impugned assessment year. He raised an alternative...
...assessment year 2009-10. 2. The only issue involved in this appeal is whether the income received from sale of carbon credit is revenue or capital in nature. ITA No. 1583/15 :- 2...that carbon credit receipts have to be treated as capital in nature. While holding so, the Tribunal has observed as under: 5. In lower appellate proceedings, the assessee contended...that his total carbon credit receipts reading ` 1,18,78,061/- comprised of `72,94,322/- in preceding assessment year 2009-10 and `45,83,739/- in the impugned assessment year. He raised an alternative...
.... 4. The next ground in this appeal is with regard to treating carbon credit as capital receipt. 5. The facts of the issue are that the assessee has included...` 1,69,234/- being carbon credit proceeds in the profit derived - - ITA 1154/15 from the windmill undertaking, which was not accepted by the Assessing Officer. The treatment of carbon credit and the proceeds...element of profit or gain and therefore, it was held in the case of My Home Power Ltd. mentioned supra that it was not taxable. The Tribunal held the above case referred to that carbon credit not...
.... 4. The next ground in this appeal is with regard to treating carbon credit as capital receipt. 5. The facts of the issue are that the assessee has included...` 1,69,234/- being carbon credit proceeds in the profit derived - - ITA 1154/15 from the windmill undertaking, which was not accepted by the Assessing Officer. The treatment of carbon credit and the proceeds...element of profit or gain and therefore, it was held in the case of My Home Power Ltd. mentioned supra that it was not taxable. The Tribunal held the above case referred to that carbon credit not...