Expense against carbon credit (Capital Receipt) not deductible

Rajshree Sugars and Chemicals Limited Vs ACIT (ITAT Chennai) As we have already held that the receipt on the sale of carbon credits is liable to be treated as capital receipts, admittedly, the expenditure incurred by the assessee in respect of the sale of the carbon credits cannot be treated as Revenue expenditure at all. However, the Assessing Officer is also directed to see to it that when the capital receipt is computed, the said expenditure is reduced from the said capital receipts for determining the net capital receipts. FULL TEXT OF THE ITAT JUDGEMENT This is an appeal filed by the Asse...