Amount of carbon credit received is a capital receipt

Godavari Sugar Mills Pvt Ltd Vs ACIT (ITAT Mumbai) ITAT Mumbai held that proceeds received by assessee-company carrying on business of power generation on sale of certified emission reduction credit (carbon credit) is a capital receipt and not business income. Facts- The assessment of the assessee was completed u/s 143(3) which resulted into disallowance of Rs. 36,62,266/-. CIT(A) confirmed disallowance of Rs.36,62,266/- on account of cane transportation charges for the reason that the payment does not prove the year of liability or the crystallisation of the liability. The assessee is aggriev...