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 re

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