https://www.taxtmi.com/caselaws?id=327812 The HC upheld the Tribunal's quashing of the order under Section 263, ruling that consideration from the sale of carbon credits constitutes a capital receipt, not business income. Citing precedent, the court found that carbon credits generated from environmental concerns lack the character of trading activity and are thus not taxable as income. Since the amount realized is not taxable profit, the order was not prejudicial to Revenue's interest. Consequently, the exercise of power under Section 263 was unwarranted. The HC found no substantial question of law and decided against the Revenue. en-us Tue, 29 Mar 2016 00:00:00 +0530 Thu, 24 Jul 2025 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327812 The HC upheld the Tribunal's quashing of the order under Section 263, ruling that consideration from the sale of carbon credits constitutes a capital receipt, not business income. Citing precedent, the court found that carbon credits generated from environmental concerns lack the character of trading activity and are thus not taxable as income. Since the amount realized is not taxable profit, the order was not prejudicial to Revenue's interest. Consequently, the exercise of power under Section 263 was unwarranted. The HC found no substantial question of law and decided against the Revenue. Case-Laws Income Tax Tue, 29 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327812