https://www.taxtmi.com/caselaws?id=407214 The court held that the proceeds from the sale of Certified Emission Reduction Credits (Carbon Credits) are capital receipts and not taxable. It was determined that the sale of Carbon Credits does not generate taxable business income as it is linked to environmental concerns rather than business operations. Additionally, the court ruled that there is no specific cost of acquisition or production for Carbon Credits, and subsidies like the Technology Up-gradation Fund (TUF) subsidy are also considered capital receipts and not liable for tax. The appeals filed by the Revenue were dismissed in favor of the assessee. en-us Thu, 29 Apr 2021 00:00:00 +0530 Wed, 04 Aug 2021 15:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=407214 The court held that the proceeds from the sale of Certified Emission Reduction Credits (Carbon Credits) are capital receipts and not taxable. It was determined that the sale of Carbon Credits does not generate taxable business income as it is linked to environmental concerns rather than business operations. Additionally, the court ruled that there is no specific cost of acquisition or production for Carbon Credits, and subsidies like the Technology Up-gradation Fund (TUF) subsidy are also considered capital receipts and not liable for tax. The appeals filed by the Revenue were dismissed in favor of the assessee. Case-Laws Income Tax Thu, 29 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=407214