BSC C&C KURALI TOLL ROAD LTD.,NEW DELHI vs. ACIT CIRCLE-5(1), NEW DELHI

ITA 3141/DEL/2019Status: DisposedITAT Delhi13 February 2023AY 2014-1513 pages
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What did the Tribunal hold?

The Tribunal held that the right to collect toll is an intangible asset eligible for depreciation at 25%, following its own previous decisions. It also allowed the provision for major maintenance, considering it in line with settled legal principles.

What were the facts?

The assessee claimed depreciation on a toll road as an intangible asset at 25% and also claimed a provision for major maintenance. The Assessing Officer and CIT(A) disallowed these claims, treating depreciation differently and the provision as contingent.

What were the issues?

Whether depreciation on the right to collect toll is allowable as an intangible asset at 25%, and whether a provision for major maintenance is allowable as a deduction.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii)

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Income Tax Appellate Tribunal, DELHI BENCH: A: NEW DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI B.R.R. KUMAR

Hearing: 09.02.2023Pronounced: 13.02.2023

PER CHANDRA MOHAN GARG, J.M.

This appeal filed by the assessee is directed against the order dated 31.01.2019 of the Ld. CIT(A)-2, New Delhi relating to Assessment Year 2014-15. ITA Nos.3141/Del/2019 2. The grounds of appeal raised by the assessee read as under:

1.

That on the facts and circumstances of the case, Ld. Commissioner of Income-tax (Appeals) has erred while confirming non-acceptance of Revised Computation of Income submitted during assessment proceedings.

2.

That on the facts and circumstances of the case, Ld. Commissioner of Income-tax (Appeals) has erred while confirming depreciation on Toll Road developed by the appellant @ 10% instead of the claim of the appella

The order continues below.

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