2015 (9) TMI 642

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....e income generated in sale of Carbon Credits as a capital receipt and not taxable. 3. The learned CIT(A) erred in allowing relief on the issue of disallowance of 80IA deduction on the component of interest income of Rs. 7,79,389 as no opportunity was provided to the AO under Rule 46A of IT Rules to verify the correctness of the claim. 4. The learned CIT(A) erred in allowing relief on the issue of the addition made towards employee compensation expenses of Rs. 10,48,500 as no opportunity was provided to the AO under Rule 46A of IT Rules to verify the correctness of the claim." 2. In Ground No. 2, the department has challenged the decision of learned CIT(A) in deleting the addition made by AO by holding that the amount received on sa....

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....At the outset, both learned DR and learned AR agreed before us that the issue in dispute is squarely covered by the decision of the ITAT, Hyderabad Bench in case of M/s My Home Power Ltd. Vs DCIT (supra), which has been confirmed by the Hon'ble Jurisdictional High Court in case of same assessee while dismissing department's appeal as reported in 365 ITR 82 / 46 Taxman.com 314. Considering such submission of both the counsels and after going through the judgment of the Hon'ble Jurisdictional High Court as aforesaid, we do not find any infirmity in the order of learned CIT(A) as the issue is squarely covered in favour of assessee by virtue of the aforesaid judgment of the Jurisdictional High Court. Accordingly, we uphold the order of the lear....

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....claim by directing AO to allow deduction u/s 80IA on the amount of Rs. 7,79,389. 9. The learned DR submitted before us that in course of assessment proceeding, assessee has not furnished any evidence to show that the amount of Rs. 7,79,389 also includes scrap sales. It was submitted, only in course of appeal hearing, assessee has furnished details/bifurcation with regard to the amount of Rs. 7,79,389. Thus, learned DR submitted that as evidence submitted before the CIT(A) was not before AO, CIT(A) was not justified in accepting assessee's claim without giving opportunity to AO in terms with Rule 46A. 10. The learned AR, on the other hand, strongly countering to the submissions made by learned DR submitted that all the informations whi....

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.... Briefly the facts are, during the assessment proceeding, AO noticed that assessee has debited an amount of Rs. 10,48,500 towards employees compensation expenses (ESOPs) in the P&L A/c under the head 'salaries and wages'. When the AO called upon assessee to justify the expenditure claimed with supporting evidence, assessee submitted that under the Employees Stock Option Policy (ESOP) the holding company Lanco Infratech Ltd. given the ESOPs benefits to its own employees and all its subsidiary companies. . Under the ESOP Policy, employees have to pay Rs. 2.43 per option and the subsidiary company will be paying Rs. 50 per option to Lanco Infratech Ltd., which is accounted as expenses in the books of subsidiary company. It was submitted that a....