Dismissing the appeal of the revenue the Court held that proceeds realized by assessee company, carrying on business of generation of electricity on sale of Certified Emission Reduction Credit (carbon credit) was capital receipts and not taxable. (AY. 2010-11)
CIT v. Tamil Nadu Newsprint & Papers Ltd. (2021) 282 Taxman 350 (Mad.)(HC)
S. 4 : Charge of income-tax-Carbon credit-Business of generation of electricity-Capital receipts-Not taxable. [S. 28(i)]