TaxTMI 
TaxTMI 
2023 (7) TMI 7
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....n (Carbon Credits) in view of the section 28(iv) of the Act and insertion of new section 115BBG in the Act the sale as revenue receipts from 01.04.2018, implies the intent of the Act, thus the sale of Carbon Credits needs to be treated as revenue receipts and not capital receipt. 2 Whether the CIT(A) was justified on the facts of the case and in law, in deleting the addition towards Sale of Certified Emission Reduction/Verified Emission Reduction (Carbon Credits) and not appreciating the fact that the appeal filed by the department on the identical issue in the assessee's own case is pending for disposal before the hon'ble High Court of Karnataka. 3. Whether the CIT(A) was justified on the facts of the case and in law, in dele....
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.... of Ld. CIT (A). Once it is accepted that the receipt in question is a capital receipt, this judgment of Hon'ble Calcutta High Court rendered in case of CIT vs. Ankit Metal & Power Ltd. (Supra) becomes applicable. We note that, Hon'ble Calcutta High Court has duly considered the judgment of Hon'ble Supreme Court rendered in case of Appollo Tyres vs. CIT (supra) and held that where a receipt is not in the nature of income at all, it cannot be included in Book Profit under Section 115JB. Hence, we follow this judgment of Hon'ble Calcutta High Court rendered in the case of CIT vs. Ankit Metal & Power Ltd. (Supra) and decide this issue also in favour of the assessee in both years. Accordingly, this Ground no.2 raised by assessee for assessme....
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....#39;ble High Court of Andhra Pradesh, we hold that the carbon credits receipts are capital in nature. So far as case law relied on by the Id. DR in the case of Apollo Tyres Ltd. v. ACIT (supra) is concerned, once there is a judgment of the Hon'ble High Court, it is bounden duty of the Tribunal to follow the judgment of the High Court. In view of the above judicial precedents, we find no infirmity in the order passed by the Id. CIT(A). Thus, the ground raised by the Revenue for both the assessment years are dismissed. 3.2 Further, in the case of Chemplast Sanmar Ltd. in ITA No.2807 to 2810/Chen/2017 dated 4.12.2019 the Tribunal has held as under: 22. A perusal of the provision of Section 115BBG clearly shows the intention of the legi....