#renewable energy certificates

ITAT Delhi clarifies that income from Renewable Energy Certificates (RECs) is directly linked to the eligible business of power sale and qualifies for deduction under Section 80IA. The ruling sets a precedent for infrastructure financing, ensuring tax benefits for renewable energy projects where RECs are part of the revenue stream.

ITAT Delhi sets aside ₹107 crore transfer pricing adjustment, ruling that Dispute Resolution Panel (DRP) directions under Section 144C are binding on Assessing Officers. The tribunal also held that Renewable Energy Certificates (RECs) qualify as capital receipts, impacting tax liability for energy sector enterprises.