27 September 2008
whether the profit on sale of carbon credit reductions or verified emission reduction certificates are eligible for deductions u/s 80-IA?(in case of Power generation unit)
03 August 2010
To my knowledge, there are no decided case law on this issue. However, the Supreme Court in Liberty India 317 ITR 218 decided that, the wording in Section 80-IB / 80-I / 80-IA is narrower and is a code itself. The word ' derived from ' is intended to cover source not beyond the first degree. On the basis of this, it may not be possible to claim deductio for ' carbon credits ' u/s 80-I/IA/IB. These credits are similar to duty drawbacks and export incentives.
CAclubindia
