Abstract

Sustainable development is the catch word of the modern world concerning geo pollution and industrial development. It means that development and environment must go hand in hand. Our environment scenario is also based on the concept of sustainable development and the Judicial Forums in India have followed this approach. The Supreme Court of India time and again has stated that the right to a clean environment is a basic aspect of life which is protected by Article 21 of the Constitution of India. Several principles like the Polluter Pays Principle, Public Trust Doctrine, Precautionary Principle, Absolute Liability, etc. are applied in the sub-continent so that two things can be achieved- restoring the environment as it was before the pollution and also compensate the people who suffered as a result of the unchecked pollution. Every such acts of compensatory nature are to be undertaken by the industries causing pollution when directed by the Judicial Forums. But here is a catch. In the Indian Sub-continent, cases take years to be decided and the pollution goes on unabated. A carbon tax is imposed by the Government to put a direct cost on the green house gas emissions by the industries which acts as an economic incentive for the industries to lower their carbon output into the environment. The Finance Act, 2017 introduced section 115 BBG under the Income Tax Act, 1961 “in order to bring clarity on the issue of taxation of income from transfer of carbon credits and to encourage measures to protect the environment.” The Income Tax Act, 1961 also encourages measures to protect the environment is a good step forward but also at the same time hints at the rising level of pollution in the Indian sub-continent.

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