https://www.taxtmi.com/caselaws?id=407213 The High Court upheld the Tribunal's decision that proceeds from the sale of Certified Emission Reduction Credits are capital receipts and not taxable under the Income Tax Act, 1961. The court referenced previous judgments and held that the sale of Carbon Credits results in capital receipts, not subject to tax. The argument that there is no cost of acquisition or production for Carbon Credits, as they are linked to machinery and processes, did not change the nature of the receipts. The court dismissed the Revenue's appeal, confirming that the income from Carbon Credits sales is considered a capital receipt and not taxable. en-us Thu, 29 Apr 2021 00:00:00 +0530 Wed, 04 Aug 2021 17:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=407213 The High Court upheld the Tribunal's decision that proceeds from the sale of Certified Emission Reduction Credits are capital receipts and not taxable under the Income Tax Act, 1961. The court referenced previous judgments and held that the sale of Carbon Credits results in capital receipts, not subject to tax. The argument that there is no cost of acquisition or production for Carbon Credits, as they are linked to machinery and processes, did not change the nature of the receipts. The court dismissed the Revenue's appeal, confirming that the income from Carbon Credits sales is considered a capital receipt and not taxable. Case-Laws Income Tax Thu, 29 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=407213