Dismissing the appeal of the revenue the Court held that the Tribunal was right in holding that the proceeds received by the assessee towards clean development mechanism by realization of carbon credits in its wind energy operations were a capital receipt and not taxable. (AY. 2009-10)
CIT v. Ambika Cotton Mills Ltd. (2021)433 ITR 193 / 279 Taxman 405 (Mad.)(HC) Editorial : Order in Ambika Cotton Mills Ltd. v Dy. CIT (2013) 27 ITR 44 (Chennai)(Trib.) is affirmed.
S. 4 : Charge of income-tax-Carban credit-Capital or revenue-sale of certified emission reduction credit, which the assessee earned on the clean development mechanism in its wind energy operations, was a capital receipt and not taxable.