2016 (8) TMI 1523

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me up with the instant Tax Case Appeal, raising the following substantial questions of law:- "1. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee is entitled to deduction under section 80 IA of the Income Tax Act? 2. Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that unabsorbed depreciation of the earlier years before the first year or claim, which has already been absorbed, should not be notionally carried forward and taken into consideration for computation of deduction u/s.80 IA of the Income Tax Act? 3. As regards substantial questions of law raised, it is the fair representation of the learned Se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to reversal or erase the dictum. 6. Material on record discloses that while confirming the order of the Commissioner of Income-Tax (Appeals), the Income Tax Appellate Tribunal, at paragraph No.6 has held as follows: "After hearing both the parties, we are of the opinion that similar issue was considered by this Tribunal in assessee's own case in ITA No.2174/Mds/2015 dated 19.06.2015 for the assessment year 2010-11, wherein it was observed as under: "4. We have heard both the parties and perused the material on record. In our opinion, carbon credit is in the nature of "an entitlement" received to improve world atmosphere and environment reducing carbon, heat and gas emissions. The entitlement earned for carbon credits can, at best,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....producing and/or selling any product, bi-product or for rendering any service for carrying on the business. In our opinion, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. The same view is supported by the following judicial precedents, which are relied on by the ld. AR: 1. CIT v. My Home Power Ltd. (2014) [365 ITR 82] (AP) 2. My Home Power Ltd. v. DCIT [21 ITR (Trib) 186] (Hyd) 3. Ambika Cotton Mills Ltd v. DCIT (2013) [27 ITR (Trib) 44] (Chennai) 4. DCIT v. Salona Cotspin Ltd. in ITA No.426/Mds/2013 for AY 209-10. 5. Sri Velayudhaswamy Spinning Mills (P) Ltd. v. DCIT in ITA No.582/Mds/2013 for AY 2009-10. 6. Sri Matha Spinning Mills Pvt. Ltd. v. DCIT in ....