Carbon Credits wrongly offered to tax in earlier year can be claimed as deduction on non-realisation

Bharath Wind Farm Ltd Vs DCIT (ITAT Chennai) Upon careful consideration of factual matrix, it could be seen that the assessee has earned Carbon Credits in earlier years on the basis of wind-mill power generated during FYs 2007-08, 2008-09 & 2009-10. Recognizing the same in its books of accounts, the assessee booked income of Rs.305.59 Lacs in AY 2010-11. This is an undisputed fact that this income has been offered to tax in earlier years. The credits earned by the assessee could be sold at prevailing market prices. In AY 2010­11, the assessee credited CDM revenue account and debited CDM r...