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2016 (2) TMI 233 - AT - Income TaxAmount received from sale of CDM - revenue or capital receipt - Held that - Amount received on sale of carbon credit is capital in nature and therefore we reverse the order of Commissioner of Income Tax (Appeals) on this issue allow the grounds raised by the assessee. See CIT Vs. My Home Power Ltd 2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT - Decided in favour of the assessee Entitlement for deduction under section 80IA - Held that - The business undertaking of the assessee is wind mill power generation/hosiery goods, etc., and it has claimed the benefit of deduction under Section 80IA of the Income Tax Act for the assessment year in question and for the subsequent years as well. Having exercised its option and its losses have been set off already against other income of the business enterprise, the assessee in this appeal falls within the parameters of Section 80IA of the Income Tax Act. There appears to be no distinction on facts in relation to the decision reported in Velayudhaswamy Spinning Mills case (2010 (3) TMI 860 - Madras High Court). - Decided in favour of the assessee
Issues:
1. Condonation of delay in filing the appeal by the assessee. 2. Confirmation of order of assessment under section 80IA(3) for the assessment years 2009-10 and 2010-11. 3. Treatment of amount received from the sale of CDM as revenue receipt. 4. Entitlement of deduction under section 80IA for the assessee. Analysis: 1. The first issue pertains to the condonation of delay in filing the appeal by the assessee. The appeal was found to be barred by a limitation of four days. The assessee provided a reasonable cause for the delay, which was accepted by the tribunal. The delay was considered non-deliberate, and in the interest of justice, the tribunal condoned the delay and admitted the appeal for disposal. 2. The second issue involves the confirmation of the order of assessment under section 80IA(3) for the assessment years 2009-10 and 2010-11. The Commissioner of Income Tax (Appeals) had erred in confirming the order of assessment, holding that the conditions prescribed under section 80IA(3) were not satisfied. The tribunal dismissed the grounds of appeal raised by the assessee, as the issue had been previously decided against the assessee. 3. The third issue concerns the treatment of the amount received from the sale of CDM as a revenue receipt. The tribunal considered the decision of the Hon'ble Andhra Pradesh High Court in a similar case and held that the amount received from the sale of carbon credit is capital in nature. The tribunal reversed the orders of the Commissioner of Income Tax (Appeals) and the Assessing Officer, allowing the grounds raised by the assessee on this issue. 4. The final issue revolves around the entitlement of deduction under section 80IA for the assessee. The tribunal upheld the order of the Commissioner of Income Tax (Appeals) on this issue, citing a decision of the jurisdictional High Court. The High Court had clarified the concept of the "initial assessment year" for computing deductions under section 80IA, leading to the sustenance of the assessee's claim for deduction. In conclusion, the tribunal partially allowed the appeal of the assessee in one case, dismissed the appeal in another case, and rejected the appeal of the Revenue in a separate case, based on the detailed analysis and decisions provided for each issue raised in the appeals.
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