REC Income Not Eligible for 10% Tax Rate as It Does Not Meet Definition of Carbon Credits: ITAT Hyderabad

Valuelabs LLP Vs DCIT (ITAT Hyderabad) The Income Tax Appellate Tribunal (ITAT), Hyderabad, adjudicated an appeal filed by the assessee firm against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which had upheld the assessment order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for Assessment Year 2020–21. The dispute primarily concerned the tax treatment of income amounting to ₹1,78,24,800 earned from the sale of Renewable Energy Certificates (RECs). The assessee had offered this income for taxation under Section 115BBG of the Act at a co...