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TMI Blog2015 (12) TMI 1877X X X X Extracts X X X X X X X X Extracts X X X X ..... its. Therefore, the income from sale of carbon credits was to be considered as capital receipt and not liable to tax under any head of income under the Income-tax Act, 1961 - Decided against revenue. - ITA No. 1122/CHD/2014 - - - Dated:- 16-12-2015 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND Ms. RANO JAIN, ACCOUNTANT MEMBER For the Department : Shri Sushi l Kumar For the Respondent : Shri Navdeep Sharma ORDER PER BHAVNESH SAINI, JM This appeal by revenue is directed against the order of ld. CIT(Appeals)-II Ludhiana dated 29.10.2014 for assessment year 2010-11 on the following grounds : 1. Whether on the facts and in the circumstances of case the Ld. CIT(A) has erred in law and on facts in deleting the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was also submitted that on identical issue, ld. CIT(A) has decided the issue in favour of the assessee in the case of Nahar Industrial Enterprises Ltd. Copy of the order is placed on record in which it was held that carbon credit receipt is not revenue receipt but capital receipt. The ld. CIT(Appeals), following his order in assessee's group cases of M/s Nahar Industrial Enterprises Ltd. dated 19.02.2014 allowed the appeal of the assessee. 3. The ld. counsel for the assessee, at the outset submitted that the issue is covered in favour of the assessee by order of ITAT Chandigarh Bench dated 15.04.2015 in ITA No. 389/CHD/2013 for assessment year 2009-10 in the case of DCIT Vs Kotla Hydro Power Pvt. Ltd., copy of the same is placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal concerns. No asset was generated in the course of business but it was generated due to environmental concerns. There was no cost of acquisition or cost of production to get entitlement for the carbon credits. Therefore, the income from sale of carbon credits was to be considered as capital receipt and not liable to tax under any head of income under the Income-tax Act, 1961. 9. Further, this decision has been followed by Chennai Bench in two cases of Ambika Cotton Mills Ltd v DCIT (supra) and Sri Velayudhaswamy Spinning Mills P. Ltd v DCIT (supra). Even Jaipur Beach has followed this decision in the case of Shree Cement Ltd Vs. Addl CIT (supra). No doubt the DR has been able to point out the contrary decision rendered by Cochin Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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