USHA MARTIN LIMITED ,KOLKATA vs. ACIT CIR-3 , RANCHI

ITA 273/RAN/2017Status: DisposedITAT Ranchi27 August 202621 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that receipts from the sale of carbon credits are capital in nature and not taxable. For mining expenses, it was decided that while not allowable as revenue expenditure, depreciation is permissible.

What were the facts?

The assessee appealed against the CIT(A)'s order concerning adjustments to income for international transactions, disallowance of general expenses, and treatment of various payments. A key issue was the taxability of carbon credit sales.

What were the issues?

The primary issues were the taxability of carbon credit sales and the allowability of mining expenses as revenue expenditure or depreciation.

Which sections of the Income-tax Act were involved?

Section 32,Section 37(1),Section 80-IA,Section 40(a)(i),Section 195,Section 9(1)(vii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri Aditya Hans and Shri Vishal Jain
For Respondent: Shri H. Robindro Singh, CIT-DR
Hearing: 31/07/2026Pronounced: 27/08/2026

PER: BENCH

1.

This is the appeal filed by the assessee against the order of the ld. CIT(A), Ranchi dated 04/08/2017 for the A.Y. 2009-10 wherein the assessee has raised following grounds of appeal:

"

1.

That the order passed by the Ld AO and partially confirmed by the Ld CIT(A) is erroneous and bad in law to the extent prejudicial to the interest of the appellant.

2.

On the facts and circumstances of the case and in law, the Ld. CIT(A) grossly erred in upholding an adjustment of Rs. 10,49,58,395/- to the income of the Appellant on account of the alleged international transactions undertaken with its Associated Enterprises (AEs) during the year and in do

The order continues below.

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