The task of an appellate authority under the taxing statute, especially a non-departmental authority like the Tribunal, is to address its mind to the factual and legal basis of an assessment for the purpose of properly adjusting the taxpayer’s liability to make it accord with the legal provisions governing his assessment. Since the aim of the statutory provisions, especially those relating to the administration and management of Income-tax is to ascertain the taxpayer’s liability correctly to the last pie, if it were possible, the various provisions relating to appeal, second appeal, reference and the like can hardly be equated to a lis or dispute as arises between two parties in a civil litigation. Finding of the Tribunal was wholly erroneous and perverse. The Tribunal was expected to apply the law and take a decision in the matter and if the Commissioner (Appeals) or the Assessing Officer had failed to apply the law, then the Tribunal was bound to apply the law. The receipt by way of sale of carbon credits had been held to be a capital receipt. Therefore, it was of a little consequence to the claim made by the assessee under section 80-IA of the Act or in other words, the question of taking a decision as to whether the deduction was admissible under section 80-IA of the Act was a non-issue. Receipt from sale of carbon credits is a capital receipt. Referred     Hukumchand Mills Ltd v.CIT 1967) 63 ITR 232 (SC), CIT v. Mahalakshmi Textile Mills Ltd (1967). 66 ITR 710 (SC), CIT v. S. Nelliappan (1967) 66 ITR 722 (SC) where in the Courts have referred the duties of the Tribunal. (AY.2011-12)