Carbon credit profit is capital receipt not taxable

Gujarat Fluorochemicals Ltd Vs DCIT (ITAT Ahmedabad)

ITAT Ahmedabad held that profit earned for carbon credits is capital in nature and hence addition treating the same as revenue in nature is unsustainable in law.

Facts- It was pointed out that the assessee had shown Rs.51.40 lakhs as Dividend Income exempt from tax under the Act, earned during the impugned year. AO noted that the assessee had interest bearing borrowed funds on which the interest was paid during the year

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