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TMI Blog2016 (4) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... capital in nature. 3. The ld. Counsel for the assessee submits that the issue has been decided in the assessee's own case for the assessment year 2010-11 by the Co-ordinate Bench of this Tribunal in I.T.A.No.2091/Mds/2013 dated 17.7.2014. A copy of the order is placed on record. 4. The ld. DR strongly placed reliance on the orders of the lower authorities. 5. We have perused the order of the Co-ordinate Bench in assessee's own case for assessment year 2010-11. We find that the issue has been decided in favour of the assessee that carbon credit receipts have to be treated as 'capital' in nature. While holding so, the Tribunal has observed as under: "5. In lower appellate proceedings, the assessee contended that his total ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipts, the assessee cannot challenge the same in appeal to treat the same as capital receipts. 7.2 The assessee has admitted receipts from trading of carbon credit as revenue in nature and included them for computation under section 80IA. It is clearly spelt out in the section 80lA that profits and gains derived by undertaking or enterprise from any business referred to in sub section (4) is eligible for quantifying the deduction. 7.3 The qualifying word used is derived, and receipts from trading of carbon credits cannot be considered as derived from the generation of electricity from wind turbine generators. They can at best be considered as attributable to the business of generation of electricity from WTGS for the reason that the energy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no dispute about the nature of receipts arising from sale of carbon credits as the decision of the Hyderabad bench of the 'tribunal' in My Home Power Ltd vs DCIT (supra) has been upheld by the hon'ble Andhra Pradesh high court vide order dated 19.2.2014 holding therein that the same are not an offshoot of business but arise from environmental concerns. Their lordships have also observed that these carbon credits are not directly linked with power generation. In other words, it has been held as 'capital' and not a revenue receipt. It is to be seen that the CIT(A) applies 'estoppel' principle against the assessee. The assessee had declared the carbon credit sale receipts as income due to the fact that it is otherwise entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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