Dismissing the appeal of the revenue the Court held that the proceeds realized by assessee engaged in wind power project on sale of Certified Emission Reduction Credit, which assessee had earned on Clean Development Mechanism in its wind energy operations was not an off-shoot of business, but an offshoot of environmental concerns and hence being a capital receipt would not be taxable. (AY. 2009-10)
CIT v. Prabhu Spinning Mills (P) Ltd. (2021) 283 Taxman 89 (Mad.) (HC)
S. 4 : Charge of income-tax-Capital or revenue-Sale of Certified Emission Reduction Credit-Not assessable as business income. [S. 28(i)]