https://www.taxtmi.com/caselaws?id=218273 ITAT Hyderabad held that carbon credits received by the assessee are capital receipts and not taxable as business income under sections 2(24), 28, 45, and 56 of the IT Act. The credits arise from international environmental concerns and are not generated through business operations, lacking any element of profit or gain. The transfer of such credits is akin to a privilege granted under the Kyoto Protocol and does not constitute income from business or profession. The tribunal relied on precedent and ICAI guidance, concluding that sale proceeds from carbon credits are capital in nature and not liable to tax as revenue receipts. The deduction under section 80IA was disallowed accordingly. en-us Fri, 02 Nov 2012 00:00:00 +0530 Tue, 05 Aug 2025 16:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218273 ITAT Hyderabad held that carbon credits received by the assessee are capital receipts and not taxable as business income under sections 2(24), 28, 45, and 56 of the IT Act. The credits arise from international environmental concerns and are not generated through business operations, lacking any element of profit or gain. The transfer of such credits is akin to a privilege granted under the Kyoto Protocol and does not constitute income from business or profession. The tribunal relied on precedent and ICAI guidance, concluding that sale proceeds from carbon credits are capital in nature and not liable to tax as revenue receipts. The deduction under section 80IA was disallowed accordingly. Case-Laws Income Tax Fri, 02 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218273