The ITAT held that the assessee's receipts from the sale of fly...

The ITAT held that the assessee's receipts from the sale of fly ash, a byproduct of coal-based thermal power plants, do not constitute taxable income. The tribunal found that the sale and utilization of fly ash proceeds are subject to stringent statutory controls under the Environment (Protection) Act, 1986, and related government notifications, which create an overriding title in favor of the government. Consequently, the assessee lacks absolute ownership or control over these proceeds, which are earmarked for specific purposes. This statutory mandate diverts income at its source, excluding it from the assessee's taxable income. The tribunal further ruled that since the sale proceeds and related interest were not credited to the profit and loss account, provisions for adding back such amounts under section 115JB do not apply. Thus, the fly ash sale revenue is not includible in the assessee's income under the Act.