2015 (12) TMI 1877

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.... 1,21,16,909/-- accrued on account of carbon credits entitlement ignoring that such profits are included in the definition of income as per section 2 (24) (xii) of the I.T. Act, 1961 and also not noticing the decision of Hon'ble ITAT, Chennai in the case of M/s Sripathy Paper Boards (P) Vs. DCIT, Circle-1(2), Coimbatore in ITA No. 1452/Mds/2012 dated 29.11.2012 for the Assessment Year 2009-10." 2. The brief facts are that Assessing Officer noted that assessee had shown income of Rs.1.21 Cr under the head Carbon Credit Receipts. This income was based upon total carbon emission reduction made by company during the year. The assessee had claimed these receipts to be capital receipts. The Assessing Officer held that these receipts were r....

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....in which in para 7 to 9, the Tribunal held as under : "7. We have considered the rival submissions carefully. The facts of the case are identical to the facts of the case decided by Hyderabad Bench of the Tribunal in the case of My Home Power Ltd Vs. DCIT (supra). In that case it was held as under:- "Held, that carbon credit was in the nature of "an entitlement" received to improve world atmosphere and environment reducing carbon, heat and gas emissions. It was not an offshoot of business but an offshoot of environmental concerns. No asset was generated in the course of business. Credit for reducing carbon emission or greenhouse effect could be transferred to another party in need of reduction of carbon emission. It does n....