BALESHWAR KHARAGPUR EXPRESSWAY LIMITED,MUMBAI vs. PCIT-6, MUMBAI

ITA 5714/MUM/2026Status: DisposedITAT Mumbai24 September 2026AY 2018-1919 pages
AI SummaryAllowed

What were the facts?

The assessee claimed depreciation on the right to collect toll as an intangible asset. The PCIT invoked Section 263, holding the assessment order erroneous and prejudicial to revenue, as the assessee did not own the road asset. The assessee argued that the right to collect toll is a license and thus an intangible asset.

What did the Tribunal hold?

The Tribunal held that the right to collect toll under a concession agreement is an intangible asset covered under Section 32(1)(ii) of the Income-tax Act. Therefore, depreciation is allowable on such an asset.

What were the issues?

Whether the right to collect toll on a highway constructed under a BOT agreement is an intangible asset eligible for depreciation under Section 32(1)(ii) of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii),Section 147,Section 144B,Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI

Before: SMT BEENA PILLAI & SMT RATNA DASGUPTA

For Appellant: Shri B. Jayaraghvan, CIT DR
For Respondent: Shri B. Jayaraghvan, CIT DR
Hearing: 19/08/2026Pronounced: 24/09/2026

PER RATNA DASGPUTA, AM

The captioned appeal by the assessee is directed against order dated 23/03/2026 passed by the Ld. Principal Commissioner of Income Tax, Mumbai-6 (in short, PCIT) under section 263 of the Baleshwar Kharagpur Expressway 2 Limited Income-tax Act, 1961 (in short, “the Act”) for Assessment Year 2018-19. 2. The grounds of appeal are as under:-

i. “On the facts and circumstances of the case and in law, the impugned order passed by the Learned Principal Commissioner of Income Tax-6, Mumbai ("Learned Pr. CIT") under section 263 of the Act, setting aside the assessment order date

The order continues below.

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