Income from Sale of Carbon Credit is capital receipt & not business income

CIT Vs Ambika Cotton Mills Ltd. (Madras High Court)

Whether on the facts and circumstances of the case, the Tribunal was right in holding that the proceeds realized by the assessee on sale of Certified Emission Reduction Credit, which the assessee had earned on the Clean Development Mechanisam in its wind energy operations, is a capital receipt and not taxable?

Carbon Credit is not an offshoot of business, but an offshoot of environmental concerns. No asset is generated in

Please become a Premium member. If you are already a Premium member, login here to access the full content.