INCOME TAX OFFICER, DELHI vs. KAPIL MOHAN & ASSOCIATES HYDRO POWER PRVIATE LIMITED, SHIMLA

ITA 7647/DEL/2025Status: DisposedITAT Delhi12 May 2026AY 2017-188 pages
AI SummaryDismissed

What were the facts?

The assessee, engaged in renewable energy generation, sold Renewable Energy Certificates (RECs). The Assessing Officer treated REC income as business revenue and denied deduction under Section 80IA. The CIT(A) held the REC income as a capital receipt, not taxable as business income.

What did the Tribunal hold?

The Tribunal held that income from the sale of RECs for the assessment years 2016-17 and 2017-18 is a capital receipt and not taxable as business income, following various judicial precedents. The legislative amendment inserting Section 115BBG was prospective.

What were the issues?

Whether income from the sale of Renewable Energy Certificates (RECs) is a capital receipt or business income, and whether it is eligible for deduction under Section 80IA.

Which sections of the Income-tax Act were involved?

Section 80IA,Section 115JB,Section 115BBG

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Respondent: Ms. Ankush Kalra, Sr. DR
Hearing: 12.05.2026Pronounced: 12.05.2026

PER SATBEER SINGH GODARA, JM These Revenue’s twin appeals ITA Nos.7646 & 7647/Del/2025 for assessment years 2016-17 and 2017-18 arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s orders, both dated 26.09.2025, having DINs and orders no. ITBA/NFAC/S/250/2025-26/1081206988(1) and ITBA/NFAC/S/250/2025-26/1081207336(1) involving

ITA No.7646 & 7647/Del/2025

proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

2.

Coming to the former assessment year 2016-17 herein, we n

The order continues below.

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