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| The Tax Publishers2021 TaxPub(DT) 0201 (Pune-Trib) INCOME TAX ACT, 1961
Section 32(1)(ii)
Assessee also incurred expenditure in constructing Amritsar Bus Terminal on BOT basis and to recoup said investment, assessee was allowed to collect Adda fees from users of said bus terminal. The said right was business or commercial right in terms of section 32(1)(ii) and was an intangible asset, therefore, assessee was entitled to claim depreciation.
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Depreciation - Intangible asset - Right to collect toll -
Assessee claimed depreciation @ 25% on expenditure incurred by assessee for construction of Amritsar Bus Terminal project on Build, Operate and Transfer (BOT) basis. AO disallowed depreciation holding that right to collect toll fees was neither a physical asset nor an intangible asset. Held: Assessee also incurred expenditure in constructing Amritsar Bus Terminal on BOT basis and to recoup said investment, assessee was allowed to collect Adda fees from users of said bus terminal. The said right was business or commercial right in terms of section 32(1)(ii) and was an intangible asset, therefore, assessee was entitled to claim depreciation.
Supported by:ITO v. Ashoka Highways (Durg) Limited [ITA No. 156/PUN/2017 for assessment year 2013-14 vide its Order, dated 5-2-2019] : 2019 TaxPub(DT) 931 (Pune-Trib), Dy. CIT v. Mahakaleshwar Tollways Pvt. Ltd. [ITA No. 2641/PUN/2016], Asstt. CIT v. West Gujarat Expressway Ltd. (2015) 57 taxmann.com 384 (Mum-Trib.), assessment year 2011-12 Order, dated 11-2-2019 and Ashoka Infrastructure Ltd. v. Asstt. CIT [ITA Nos. 1452 to 1457/PUN/2014 for assessment years 2006-07 to 2011-12]. Relied:Asstt. CIT v. Progressive Construction Ltd. (2018) 92 Taxmann.com 104 (Hyd-Trib.) : 2018 TaxPub(DT) 896 (Hyd-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2006-07
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