TaxTMI 
TaxTMI 
2022 (7) TMI 731
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....e DRP] qua the assessment year 2017-18 on the grounds inter alia that :- "Dwarikesh Sugar Industries Ltd., the Appellant herein, begs to prefer this appeal against the order dated 23rd February, 2022, passed by the Learned Assessing Officer, National Faceless Assessment Centre, Delhi (hereinafter referred to as "the Learned Assessing Officer") under section 143 (3) r/w. Section 144C (13) r/w. Section 144B of the Income Tax Act, 1961 (hereinafter referred to as "the Act") in pursuance to the directions issued by the Hon'ble Dispute Resolution Panel - 1, Mumbai - 2 (hereinafter referred to as "the Hon'ble DRP") dated 28th January, 2022 under section 144C (5) of the Act on the following grounds : 1. The Learned Assess....
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....ellant craves leave to add to, alter amplify or delete any of the aforesaid grounds of appeal at or before the hearing." 2. Briefly stated facts necessary for adjudication of the controversy at hand are : assessee M/s. Dwarikesh Sugar Industries Ltd. (DSIL) is into the business of manufacturing of sugar and allied products. DSIL's business portfolio also comprises of molasses and bagasse which are either generated as a residue or a by-product of sugar production process. During the year under assessment assessee entered into specified domestic transactions as reported in form 3CEB viz. power transfer to sugar units, stream transfer to sugar units, purchase of raw materials and allocation of expenses. Partly declining the transfer pricing....
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.... record in the light of the facts and circumstances of the case and law applicable thereto. 7. From the facts narrated above and grounds raised by the assessee the sole question arises to be determined in this case is: "As to whether an amount of Rs.8,90,53,500/- received by the assessee on account of sale of Renewable Energy Certificate (REC) carbon credits as revenue receipt or a capital receipt as claimed by the assessee." 8. AO/DRP disallowed the claim of the assessee claiming the sale of REC of Rs.8,90,53,500/- as capital receipt being not offered to tax by holding that the same is a revenue receipt and is liable to be subjected to tax. 9. At the very outset, the Ld. A.R. for the assessee brought to the notice of the ....
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....lied upon in CIT v/s My Home Power Ltd., [2014] 365 ITR 082 (AP) (supra) filed by the Revenue, the Hon'ble Andhra Pradesh High Court held that the Tribunal had factually found that Carbon Credit was not off-shoot of business but off-shoot of environmental concerns and no asset was generated in course of business but it was generated due to environment concerns. Further we find that the Hon'ble A.P. High Court agreed with the factual analysis as the assessee carried on business of power generation and Carbon Credit was not even directly linked with power generation. It is held that on sale of excess Carbon Credits income was received and the Tribunal correctly held that it is capital receipt and could not be a business receipt or income. As ....