https://www.taxtmi.com/caselaws?id=774962 ITAT Delhi held that revenue from fly ash sales by thermal power plants is not taxable income. The assessee argued that amounts set aside for Fly-Ash Utilization Reserve Fund constitute income diversion by overriding title. The tribunal found that fly ash disposal and sale are entirely government-regulated activities under Environment Protection Act, 1986, with both sale and utilization of proceeds subject to strict statutory controls. The government's conditional permission to sell fly ash through 2009 notification did not grant unrestricted commercial rights. Due to statutory restrictions, the assessee never had absolute ownership or control over fly ash sale receipts. The tribunal concluded that statutory mandate creates overriding title that divests the assessee from absolute control over sale proceeds, making such income non-taxable when legal obligation diverts income from source itself. en-us Mon, 23 Jun 2025 00:00:00 +0530 Thu, 17 Jul 2025 08:19:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774962 ITAT Delhi held that revenue from fly ash sales by thermal power plants is not taxable income. The assessee argued that amounts set aside for Fly-Ash Utilization Reserve Fund constitute income diversion by overriding title. The tribunal found that fly ash disposal and sale are entirely government-regulated activities under Environment Protection Act, 1986, with both sale and utilization of proceeds subject to strict statutory controls. The government's conditional permission to sell fly ash through 2009 notification did not grant unrestricted commercial rights. Due to statutory restrictions, the assessee never had absolute ownership or control over fly ash sale receipts. The tribunal concluded that statutory mandate creates overriding title that divests the assessee from absolute control over sale proceeds, making such income non-taxable when legal obligation diverts income from source itself. Case-Laws Income Tax Mon, 23 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774962