CIT v. Maheshwari Devi Jute Mills Ltd.

57 ITR 36Supreme Court of India1965#3408 most cited

What is CIT v. Maheshwari Devi Jute Mills Ltd. authority for?

Consideration received for the sale or transfer of an entitlement or accretion of capital, such as surplus loom hours, is a capital receipt and not taxable income.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2013 to 2026.

Also referred to as

CIT v. Maheshwari Devi Jute Mills Ltd. · 57 ITR 36 · capital receipt · business income · exploitation of capital asset · transfer of loom hours · carbon credit

Sections most often in play

Section 143(3)Section 28(iv)Section 36(1)(iii)Section 80IASection 143(1)

Issues it is cited on

section 115psection 28(iv)bona fide mistakepurposive interpretationsection 32(1)(iia)depreciation on goodwillintangible assetssection 2(24)ddtbook profitsput to usededuction under section 80ia

Judgments citing CIT v. Maheshwari Devi Jute Mills Ltd.

Friends Salt Works and Allied Industries, Gandhidham vs. ACIT, Circle-1, Gandhidham

In the result, the appeal of the assessee is partly allowed, in above terms

ITA 169/RJT/2024[2017-18]Status: DisposedITAT Rajkot02 Jan 2026AY 2017-18

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Puglia, Ld. (CIT) DR
Section 143(3)

…n, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt, For this proposition, we place reliance on the judgement of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obs…

Friends Salt Works & Allied Inds., Gandhidham vs. The Addl. Commissioner of Income Tax, Range Gandhidham, Gandhidham

In the result, the appeal of the assessee is partly allowed, in above terms

ITA 99/RJT/2023[2015-16]Status: DisposedITAT Rajkot02 Jan 2026AY 2015-16

Bench: Dr. Arjun Lal Saini & Dr. Dinesh Mohan Sinha

For Appellant: Shri K. C. Thacker, Ld. A.RFor Respondent: Shri Sanjay Puglia, Ld. (CIT) DR
Section 143(3)

…n, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt, For this proposition, we place reliance on the judgement of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obs…

Srf Limited, New Delhi vs. DCIT, Circle- 1, Ltu, New Delhi

In the result, the appeal being ITA No

ITA 4539/DEL/2017[2013-14]Status: DisposedITAT Delhi12 Dec 2025AY 2013-14

Bench: Shris.Rifaur Rahman & Shri Sudhir Pareek

For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 10ASection 143(3)Section 144C(5)Section 14ASection 92BSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘H’: NEW DELHI. BEFORE SHRIS.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.4539/Del/2017 (Assessment Year: 2013-14) SRF Limited, vs. ACIT, Circle 1, C – 8, Commercial Complex, LTU, New Delhi. Safdarjang Development Area, New Delhi – 110 016. (PAN : AAACS0206P) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Pradeep Dinodia, CA Shri Ravi Kumar, CAR Shri Shubham, CA REVENUE BY : Shri S.K. Jadhav, CIT DR Date of Hearing : 15.10.2025 Date of Order : 12.12.2025 O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. These appeals are fi…

Srf Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal being ITA No

ITA 80/DEL/2016[2011-12]Status: DisposedITAT Delhi12 Dec 2025AY 2011-12

Bench: Shris.Rifaur Rahman & Shri Sudhir Pareek

For Appellant: Shri Pradeep Dinodia, CAFor Respondent: Shri S.K. Jadhav, CIT DR
Section 10ASection 143(3)Section 144C(5)Section 14ASection 92BSection 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘H’: NEW DELHI. BEFORE SHRIS.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.4539/Del/2017 (Assessment Year: 2013-14) SRF Limited, vs. ACIT, Circle 1, C – 8, Commercial Complex, LTU, New Delhi. Safdarjang Development Area, New Delhi – 110 016. (PAN : AAACS0206P) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Pradeep Dinodia, CA Shri Ravi Kumar, CAR Shri Shubham, CA REVENUE BY : Shri S.K. Jadhav, CIT DR Date of Hearing : 15.10.2025 Date of Order : 12.12.2025 O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. These appeals are fi…

M/S. Satia Industries Limited, Muktsar vs. Deputy Commissioner of Income Tax Circle-1, Bathinda

In the result, the appeal of the assessee bearing ITA No

ITA 193/ASR/2022[2018-19]Status: DisposedITAT Amritsar13 Jun 2023AY 2018-19

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 115BSection 143(3)Section 144C(8)Section 250oSection 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No.193/Asr/2022 Assessment Year: 2018-19 M/s Satia Industries Ltd. Vs. National Faceless Malour Road, Vill. Rupana, Assessment Centre, Distt. Muktsar. Assessment Unit, I.T. [PAN:-AACCS7233A] Department New Delhi. (Appellant) (Respondent) Appellant by Sh. Sudhir Sehgal, Sh. P.N. Arora & Ashwani Juneja, Adv. Respondent by Sh. Girish Bali, CIT. DR Date of Hearing 17.05.2023 Date of Pronouncement 13.06.2023 ORDER Per:Anikesh Banerjee, JM: The instant appeal o…

Dcm Shriram Industries Limited, New Delhi vs. ACIT, Circle-7(1), Delhi

In the result, the appeals are partly allowed

ITA 1000/DEL/2022[2017-18]Status: DisposedITAT Delhi15 Mar 2023AY 2017-18

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2017-18 With Assessment Year 2016-17 With Assessment Year 2015-16

Section 133(6)Section 80I

…ion, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obs…

Dcm Shriram Industries Ltd, New Delhi vs. Addi. CIT National E - Assesment Centre, New Delhi

In the result, the appeals are partly allowed

ITA 539/DEL/2021[2016-17]Status: DisposedITAT Delhi15 Mar 2023AY 2016-17

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2017-18 With Assessment Year 2016-17 With Assessment Year 2015-16

Section 133(6)Section 80I

…ion, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obs…

Dcm Shriram Industries Ltd, New Delhi vs. Addi. CIT Special Range-3, New Delhi

In the result, the appeals are partly allowed

ITA 1841/DEL/2020[2015-16]Status: DisposedITAT Delhi15 Mar 2023AY 2015-16

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2017-18 With Assessment Year 2016-17 With Assessment Year 2015-16

Section 133(6)Section 80I

…ion, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obs…

DCIT(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3178/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…pital receipt is generated or a profit out of the business activity of the assessee. More or less, in a similar case, the Apex Court had an occasion to consider such an issue in the case of Commissioner of Income-tax v. Maheshwari Devi Jute Mills Ltd. [(1965) 57 ITR 36 (SC)], wherein the question came up for consideration before 51 ITA.No. 3139 & 3178/MUM/2019 (A.Y. 2011-12) M/s. ACC Limited the Apex Court as to whether by sale of loom-hours, the amount received could be termed as capital receipt or the income out of business. In the said decision, the Apex Court held that the amount received out of sale of loom…

Acc Ltd., Mumbai vs. Addl CIT(Ltu), Mumbai

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3139/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Ble

Section 14Section 143(3)Section 14A

…pital receipt is generated or a profit out of the business activity of the assessee. More or less, in a similar case, the Apex Court had an occasion to consider such an issue in the case of Commissioner of Income-tax v. Maheshwari Devi Jute Mills Ltd. [(1965) 57 ITR 36 (SC)], wherein the question came up for consideration before 51 ITA.No. 3139 & 3178/MUM/2019 (A.Y. 2011-12) M/s. ACC Limited the Apex Court as to whether by sale of loom-hours, the amount received could be termed as capital receipt or the income out of business. In the said decision, the Apex Court held that the amount received out of sale of loom…

Srf Ltd., Gurgaon vs. Addl CIT, New Delhi

In the result, this ground of the assessee is allowed for statistical purposes

ITA 774/DEL/2017[2009-10]Status: DisposedITAT Delhi23 Feb 2023AY 2009-10

Bench: Sh. Anil Chaturvedi & Sh. Yogesh Kumar Ussrf Limited Vs. Acit Unitech Crest, Greenwood Range – 9, City Block – C, Sector – 45, Ltu, New Delhi Gurgaon – 122 003 Pan No. Aaacs 0206 P (Appellant) (Respondent) Assessee By Shri Pradeep Dinodia, Shri R. K. Kapoor C.A. Shri Ravi Kumar Revenue By Shri Mahesh Shah, Cit (Dr) Shri Rajesh Kumar, Cit (Dr) Date Of Hearing: 10/01/2023 Date Of Pronouncement: 23/02/2023 Order Per Anil Chaturvedi, Am: The Present Appeal Is Filed By The Assessee Directed Against The Order Dated 27.09.2016 Of The Commissioner Of Income Tax (Appeals)-44, New Delhi [For Short, Cit(A)] Under Section 143(3) R.W.S 144C Of The Income Tax Act, 1961 [For Short, 'The Act'] For Assessment Year 2009-10. 2. Brief Facts Of The Case As Culled Out From The Material On Record Are As Under:-

Section 143(2)Section 143(3)Section 144CSection 14ASection 92C

…on, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgement of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obs…

Srf Limited, New Delhi vs. ACIT, Circle- 1, Ltu, New Delhi

ITA 5892/DEL/2019[2008-09]Status: DisposedITAT Delhi23 Jan 2023AY 2008-09

Bench: Sh. N.K.Billaiya & Sh. Anubhav Sharmaita No.5892/Del/2019, A.Y. 2008-09

Section 115JSection 143(3)Section 250

…on, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgement of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement forcontrol of production was capital receipt and not income. Beingso, the consideration received by the assessee is similar to consideration received by transferring of loom hours. TheSupreme Court considered this fact and observ…

The ACIT, Circle-4(1)(2), Ahmedabad vs. M/S. Torrent Power Limited, Ahmedabad

ITA 2047/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad28 Dec 2022AY 2013-14
For Appellant: Shri Vartik Choksi, A.RFor Respondent: Shri Ritesh Parmar, CIT. D.R
Section 14ASection 36Section 80

…carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT v. Maheshwari Devi Jute Mills Ltd. [1965] 57 ITR 36 wherein held that transfer of surplus loom hours to other mill out of those allotted to the assesses under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obse…

The ACIT, Circle-4(1)(2), Ahmedabad vs. M/S. Torrent Power Ltd., Ahmedabad

ITA 14/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad28 Dec 2022AY 2012-13
For Appellant: Shri Vartik Choksi, A.RFor Respondent: Shri Ritesh Parmar, CIT. D.R
Section 14ASection 36Section 80

…carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT v. Maheshwari Devi Jute Mills Ltd. [1965] 57 ITR 36 wherein held that transfer of surplus loom hours to other mill out of those allotted to the assesses under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. The Supreme Court considered this fact and obse…

M/S Quality Apparel Exporters Pvt Ltd., Mumbai vs. ITO Ward 11(1)(1), Mumbai

In the result, the Ground No

ITA 2352/MUM/2019[2012-13]Status: DisposedITAT Mumbai05 May 2022AY 2012-13

Bench: Shri G.S.Pannu & Shri Pavan Kumar Gadaleita No. 2352 & 2353/Mum/2019 (A.Y: 2012-13 & 2013-14) M/S. Quality Apparel Vs. Ito -Ward -11(1)(1) Exports Pvt Ltd, Room No. 201, Unit No.4, Wicel Bldg, 2Ndfloor,Aayakar Seepz, Midc, Moral, Bhavan, M.K. Road, Andheri (E), Mumbai Mumbai – 400020 400093 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacq1711F Appellant .. Respondent Appellant By : None Respondent By : Mr.T.Shankar.Dr Date Of Hearing 20.04.2022 Date Of Pronouncement 04.05.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: These Are The Appeals Filed The By The Assessee Against The Separate Orders Of The Commissioner Of Income Tax (Appeals)-18, Mumbai Passed U/S 143(3) R.W.S 250 Of The Act.

For Appellant: NoneFor Respondent: Mr.T.Shankar.DR
Section 143(1)Section 143(2)Section 143(3)

…not income from house property. The appellant further relied on the decision of Hon’ble Supreme Court namely CIT Vs. Vikram Cotton Mills Ltd (1988) 169 ITR 597, Cept Vs Shri Laxmi Silk Mills (1951) 20 ITR 451 and CIT Vs. Maheshwari Devi Jute Mills Ltd (1965) 57 ITR 36 and CIT Vs Vikram Cotton Mills Ltd. (1988) 169 ITR 597 and contended that rent income should not be taxed as Income from House Property. 4.3.2 After examining the explanation of the appellant and the contention of the Assessing Officer I am of the view that in the assessment order the Assessing Officer contended, the appellant was the owner of the…

Deputy Commissioner of Income Tax, Circle- 6(1)(2), Bangalore vs. M/S. Subhash Kabini Power Corporation Limited, Bangalore

In the result, the appeal filed by the Revenue is dismissed

ITA 350/BANG/2020[2011-12]Status: DisposedITAT Bangalore18 Mar 2022AY 2011-12

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year :2011-12 The Deputy Commissioner Of Vs. M/S. Subhash Kabini Power Corporation Ltd., Wing South Portion, Cristu Complex, 5Th Income Tax, Circle – 6(1)(2), Floor, No.41/7, Lavelle Road, Bengaluru. Bengaluru–560 001. Pan : Aaccs 0881 J Appellant Respondent Assessee By : Shri. Ravi Tulsiyan, Ca Revenue By : Shri. Sankar Ganesh K, Jcit(Dr)(Itat), Bengaluru. Date Of Hearing : 14.03.2022 Date Of Pronouncement : .03.2022 O R D E R

For Appellant: Shri. Ravi Tulsiyan, CAFor Respondent: Shri. Sankar Ganesh K, JCIT(DR)(ITAT), Bengaluru
Section 115JSection 143(3)Section 80

…nion. carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT v. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. Being so, the consideration received by the assessee is similar to consideration received by transferring of loom hours. Hie Supreme Court considered this fact and obs…

Srf Limited, New Delhi vs. ACIT, Circle- 1, Ltu, New Delhi

Appeals are allowed

ITA 6693/DEL/2018[2006-07]Status: DisposedITAT Delhi07 Feb 2022AY 2006-07

Bench: The Hearing Of The Appeal.

Section 28Section 37

…on, carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgement of the Supreme Court in the case of CIT vs. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement forcontrol of production was capital receipt and not income. Beingso, the consideration received by the assessee is similar to consideration received by transferring of loom hours. TheSupreme Court considered this fact and observ…

Dabur Invest Corp, New Delhi vs. JCIT, Range-46, New Delhi

In the result, appeal of the assessee is partly allowed

ITA 8058/DEL/2018[2015-16]Status: DisposedITAT Delhi11 Feb 2021AY 2015-16

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi(Partially Through Video Conferencing) Dabur Invest Corp, The Joint Commissioner Of Vs. 4Th Floor, Punjabi Bhawan, 10, Income Tax , Rouse Avenue, New Delhi Range-46, Pan: Aaadfd2529G New Delhi (Appellant) (Respondent)

For Appellant: Shri M. P. Rastogi, AdvFor Respondent: Shri G. C. Srivastava, Adv
Section 143Section 4

…ramamma vs. CIT in 57 ITR 532 (SC). 6. There is a fundamental difference between capital receipts and income receipts. The income receipts are liable to tax u/s 4 of the Act, but capital receipts are not liable to tax except the capital gain. He relied up on 57 ITR 36 (SC) CIT vs. Maheshwari Devi Jute Mills Ltd., 249 ITR 265 (Bom) Caddle Weaving Mills Pvt. Ltd. vs. CIT, 273 ITR 1 (SC) CIT vs. D.P. Sandhu Brothers Pvt. Ltd. , 195 ITR 877 (SC) Padmaraje R. Kadambande vs. CIT, 57 ITR 36 (SC) CIT vs. Maheshwari Devi Jute Mills Ltd. 6.1 The nature and character of receipts is determined with reference to the purpose…

Raykal Aluminium Company Private Limited, Bhubaneswar vs. DCIT, Corporate Circle-1(2), Bhubaneswar

In the result, appeal of the assessee is dismissed

ITA 488/CTK/2017[2013-14]Status: DisposedITAT Cuttack30 Jul 2020AY 2013-14

Bench: Shri Chandra Mohan Garg & Laxmi Prasad Sahuassessment Year: 2013-14

For Appellant: Shri P.K.Mishra, ARFor Respondent: Shri Subhendu Dutta, DR

…sessm ent Y ear : 20 13- 14 chargeable to tax. In this connection, the Supreme Court in the case of OT vrs. Karnal Cooperative Sugar Mills Ltd. [243 ITR 2], CIT vrs. M/s. Pormi Sugars and Chemicals Ltd (306 ITR 392) and CIT vs Maheswari Devi Jute Mills Ltd. (57 ITR 36) has held that capital receipts are not liable to tax under the Income tax Act, 1961.” 10. The Assessing Officer dismissed the contention of the assessee by observing as under: “ 5.2 From the above stated facts, it is clear that the amount of Rs.1,33,97,073 funded by M/s. DUBAL to the assessee company, which was to be converted into equity shares…

The Joint Commissioner of Income Tax(OSD), Gandhinagar vs. Kalpataru Power Transmission Ltd., Gandhinagar

In the result, Revenue’s appeal in ITA No

ITA 1463/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad10 May 2019AY 2011-12

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad1. आयकर अपील सं./I.T.A. No.1462/Ahd/2016 2.आयकर अपील सं./I.T.A. No.1463/Ahd/2016 ("नधा"रण वष" / Assessment Years: 2010-11 & 2011-12 Respectively)

For Appellant: Shri O.P.Sharma, CIT-DRFor Respondent: Shri Bhavin Marfatiya, AR
Section 14A

…carbon credit is entitlement or accretion of capital and hence income earned on sale of these credits is capital receipt. For this proposition, we place reliance on the judgment of the Supreme Court in the case of CIT v. Maheshwari Devi Jute Mills Ltd. [1965] 57 ITR 36 wherein held that transfer of surplus loom hours to other mill out of those allotted to the assessee under an agreement for control of production was capital receipt and not income. ITA Nos.1462 & 1463/Ahd/2016 Jt. CIT (OSD) vs. Kalpataru Power Transmission Ltd. Asst.Years – 2010-11 & 2011-12 Being so, the consideration received by the assessee i…

CIT v. Maheshwari Devi Jute Mills Ltd. (57 ITR 36) — Cited in 35 Judgments | BharatTax