https://www.taxtmi.com/caselaws?id=410644 The High Court affirmed that the proceeds from the sale of Certified Emission Reduction Credit (Carbon Credits) are capital receipts and not taxable under the Income Tax Act, 1961. The court upheld the Tribunal's decision that the sale of Carbon Credits is not liable for tax under any head of income. Additionally, it ruled that there is no cost of acquisition or production associated with Carbon Credits, as they are generated due to environmental concerns and not directly linked to business operations. The High Court's decision favored the assessee, in line with previous judgments and established precedents. en-us Thu, 29 Apr 2021 00:00:00 +0530 Thu, 05 Aug 2021 21:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=410644 The High Court affirmed that the proceeds from the sale of Certified Emission Reduction Credit (Carbon Credits) are capital receipts and not taxable under the Income Tax Act, 1961. The court upheld the Tribunal's decision that the sale of Carbon Credits is not liable for tax under any head of income. Additionally, it ruled that there is no cost of acquisition or production associated with Carbon Credits, as they are generated due to environmental concerns and not directly linked to business operations. The High Court's decision favored the assessee, in line with previous judgments and established precedents. Case-Laws Income Tax Thu, 29 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=410644