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The Tax Publishers ITO v. Ravi Kira Power Projects (P) Ltd. [ITA No. 1415/Hyd/2015, dt. 7-4-2016] : 2016 TaxPub(DT) 2133 (Hyd-Trib) Receipt of carbon credits whether taxable *Facts:* Assessee in the business of bio-mass fuel generation received proceeds from carbon credits arising from lower emissions. Assessing Officer denied section 80IA deduction holding it was not part of the business realizations. On appeal to Commissioner (Appeals) two points were raised viz. claim of section 80IA + taxability of carbon credits. The second plea was accepted on the taxability of carbon credits holding that they were not taxable vide AP high court verdict of CIT v. My Home Power Ltd (2014) 365 ITR 82. On further appeal by the department: Held that carbon credits are not taxable receipts. *Note:* The decision of My Home Power has been admitted as a SLP by the Apex Court vide SLP No. 20314 of 2014.

The Tax Publishers

ITO v. Ravi Kira Power Projects (P) Ltd. [ITA No. 1415/Hyd/2015, dt. 7-4-2016] : 2016 TaxPub(DT) 2133 (Hyd-Trib)

Receipt of carbon credits whether taxable

Facts:

Assessee in the business of bio-mass fuel generation received proceeds from carbon credits arising from lower emissions. Assessing Officer denied section 80IA deduction holding it was not part of the business realizations. On appeal to Commissioner (Appeals) two points were raised viz. claim of section 80IA + taxability of carbon credits. The second plea was accepted on the taxability of carbon credits holding that they were not taxable vide AP high court verdict of CIT v. My Home Power Ltd (2014) 365 ITR 82. On further appeal by the department:

Held that carbon credits are not taxable receipts.

Note: The decision of My Home Power has been admitted as a SLP by the Apex Court vide SLP No. 20314 of 2014.