Case Law Details
Essel Mining & Industries Limited Vs DCIT (ITAT Mumbai)
ITAT held that sale of Renewable Energy Certificate (Carbon Credit) of income received by the assessee is a capital receipt and could not be business receipt or income nor it is directly linked with the business of the assessee nor any asset is generated in the course of business but it is generated due to environmental concern. So the addition of Rs. 10,20,587/- by the AO from the sale of Carbon Credit and confirmed by the ld. CIT(A) is not sustainable, hence, ordered to be deleted.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-47, Mumbai [hereinafter referred to as ‘the CIT (A)’] vide order dated 05.02.2021 for the Assessment Year (AY) 2015-16. The assessee has raised the following grounds of appeal:
1. That on the facts and in the circumstances of the case and in law, the Commissioner of Income Tax (Appeals) {hereinafter referred to as the CIT(A)} erred in confirming the disallowance of the claim of Carbon Credit Income as Capital Receipt of Rs. 10,20,587/-.
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