Sale of carbon credits is capital receipt and not taxable

CIT Vs Wescare (India) Ltd. (Madras High Court) No income tax payable on sales proceeds of Certified Emission Reduction Credit procured on Clean Development Mechanism In this case Commissioner of Income Tax, Chennai (Appellant) had filed an appeal under Section 260A of the Income Tax Act, 1961 (“the IT Act”) against the order dated March 12, 2021 (Impugned Order) passed in ITA No. 509/Chny/2017 on the file of the Income Tax Appellate Tribunal, Chennai Bench (the ITAT) regarding the Assessment Year 2009-2010. The ITAT, in the Impugned order, had held that the proceed realized by M/S...