Case Law Details
Rajshree Sugars and Chemicals Limited Vs ACIT (ITAT Chennai)
As we have already held that the receipt on the sale of carbon credits is liable to be treated as capital receipts, admittedly, the expenditure incurred by the assessee in respect of the sale of the carbon credits cannot be treated as Revenue expenditure at all. However, the Assessing Officer is also directed to see to it that when the capital receipt is computed, the said expenditure is reduced from the said capital receipts for determining the net capital receipts.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the Assessee against the order of the learned Commissioner of Income Tax (Appeals)-I, Coimbatore in ITA No.188/09-10 dated 01.03.2011 for the Assessment Year 2007-08.
2. Shri R. Vijayaraghavan, Advocate represented on behalf of the Assessee and Mr. M. Srinivasa Rao, CIT-DR represented on behalf of the Revenue.
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