Case Law Details
CIT Vs Wescare (India) Ltd. (Madras High Court)
No income tax payable on sales proceeds of Certified Emission Reduction Credit procured on Clean Development Mechanism
In this case Commissioner of Income Tax, Chennai (Appellant) had filed an appeal under Section 260A of the Income Tax Act, 1961 (“the IT Act”) against the order dated March 12, 2021 (Impugned Order) passed in ITA No. 509/Chny/2017 on the file of the Income Tax Appellate Tribunal, Chennai Bench (the ITAT) regarding the Assessment Year 2009-2010.
The ITAT, in the Impugned order, had held that the proceed realized by M/S. Wescare (India) Ltd (“the Respondent”) on the sale of Certified Emission Reduction (“CER”) Credit, which the Respondents had procured on the Clean Development Mechanism (“CDM”) in their wind energy operations, was a capital receipt and, therefore, was not taxable.
The Appellant had challenged the very correctness of ITAT’s Order at hand.
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