Carbon Credit Sale Treated as Capital Receipt, Not Taxable Income

DCIT Vs MSPL Ltd. (ITAT Mumbai) Sale of Carbon Credits Is Capital Receipt; ₹15.16 Cr Addition Deleted Following Bombay HC The Assessing Officer treated ₹15.16 crore received by the assessee on sale of carbon credits as taxable business income in reassessment for AY 2011-12. The CIT(A) deleted the addition holding the receipt to be capital in nature. The Tribunal upheld the deletion, noting that the taxability of carbon credit receipts is now conclusively settled. Relying on the landmark judgment of the Andhra Pradesh High Court in My Home Power Ltd. and, more importantly, the binding decis...