Income from sale of carbon credits cannot be taxed as business income

CIT Vs Vedha Spinning Mills Private Limited (Madras High Court) Conclusion: Carbon Credit was not an offshoot of business, but an offshoot of environmental concerns. No asset was generated in the course of business, but it was generated due to environmental concerns. Therefore, income from sale of carbon credits was to be considered as capital receipt and not liable for tax under any head of income under the Income Tax Act, 1961. Held: The issue arose for consideration was whether sale of carbon credits was to be considered as capital receipt and not liable for tax under any head of income und...