2015 (5) TMI 809

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.... the following grounds of appeal:                 "2. The Commissioner (Appeals) erred in confirming the disallowance of the claim of Rs. 45,83,739/- from the sale of carbon credit under section 80lA of the Act.                 3. The Commissioner (Appeals) erred in upholding the view of the assessing officer that receipts from transfer of carbon credit cannot be treated as derived from the undertaking, since profits do not arise directly from the generation of electricity from WTGs.                  &nbsp....

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....o exclude the receipt of Rs. 72,94,322/- being receipts of carbon credit pertaining to the assessment year 2009-10 in computing the total income of the present year." 3. The assessee is an 'individual'. He is trading in power loom cloth and generates wind power. The assessee had filed his return on 28.9.2010 admitting total income of Rs. 1,09,55,001/-. The same was 'summarily' processed. 4. In 'scrutiny', the Assessing Officer noticed the assessee's receipts from sale of carbon credits of Rs. 45,83,739/- claimed as deduction u/s 80IA to have been 'derived' from his wind power generation business. The Assessing Officer held in assessment order dated 4.2.2013 that the said receipts had not been 'derived' but only 'attributable' to the w....

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..... 1,18,78,061/-. In appeal claimed that these are capital receipts as per the order of the ITAT "C" Bench Chennai in the case of M/s. Ambilka Cotton Mills Limited.                 7.1 In view of the fact that the assessee has already admitted these amounts as revenue receipts, the assessee cannot challenge the same in appeal to treat the same as capital receipts.                 7.2 The assessee has admitted receipts from trading of carbon credit as revenue in nature and included them for computation under section 80IA. It is clearly spelt out in the section 80lA that profits and gains d....

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....IA. However, considering the facts and circumstances it indicate that the receipts from sale of carbon credit cannot be treated as derived from the undertaking and also the apex court decision in the case of Sterling foods reiterated in Liberty India Vs. Commissioner of Income Tax (317 ITR 218) the claim of the 80lA cannot stand the test of law and hence disallowed.                 7.6 Regarding the quantum of relief the Assessing Officer may examine whether receipts from 2009-10 is to be taken in the relevant year and not in assessment year 2010-11.                 8.0 In the result the....